Editor's Note:

We are seeing a divergence in the market again. Stocks have delivered a two-day pullback this week. Yet the S&P 500 index is only down -1% from last week's record highs. The small cap Russell 2000 index is down nearly -3%. The NASDAQ composite is down -2%.

Do investors have cold feet ahead of the Q2 earnings season? Are they worried about corporate results missing expectations? Of is this just normal profit taking after last week's rally?

The two-day drop has erased about one week of gains in the NASDAQ and only about three days of gains for the S&P 500. It feels a little early for all the chicken littles to be crying "market correction" right now.

That doesn't mean I would jump into new bullish positions tomorrow. Corrections can be sharp and ugly. I'd rather wait and watch for a bounce before considering new positions.

No new positions tonight.