Editor's Note:

The market's big cap indices are little changed from a week ago. The S&P 500 and the NASDAQ managed to eke out new weekly gains. Yet the Dow Industrials are still struggling with the 13,000 level. Meanwhile the small cap Russell 2000 index is breaking down from its trading range.

If the small caps are breaking down the big caps may not be that far behind. Momentum has definitely slowed and the S&P 500 and NASDAQ are technically just outside their narrow, bullish channels. After a +10% gain this year the S&P 500 is overdue for a pullback.

I am reluctant to open new bullish positions with the market on the verge of a correction lower. The good news is that a healthy market correction will be an entry point for new positions as we look further into 2012 and beyond.

Our watch list continues to generate new trades and we added three new candidates tonight. In addition to the watch list here are several stocks on my radar screen. They are not ready to be listed as new plays or watch list candidates but that could change on a correction or a breakout higher.

On my radar: MON, EBAY, SCHW, EXPE, MDR, CLB, AIG, ARO, SODA, CREE, C, WYNN.