Editor's Note:

It's time for the Q1 earnings season fireworks to begin. Winners and losers will be exploding up and down across the market for the next couple of weeks. We have already seen a preview with Alcoa, JP Morgan, Google, and Bank of America. So far it looks like investors are in a sell-the-news sort of mood. If this sell-the-news trend continues and stocks move lower there will be more and more concern about a double top of the S&P 500. If that happens then we do not want to be launching new bullish positions any time soon since it could portend a much deeper correction for the market. On the other hand if stocks reverse higher and breakout then bears will be running for cover.

I am not adding any new plays tonight. It's time to step back, watch the show we call the stock market, and wait for the dust to settle to see what new opportunities present themselves. Watch your favorite stocks and look for a pull back toward support.