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Editor's Note:

(April 27, 2014)

I am growing more cautious on equities tonight. I warned readers in the market commentary last weekend to expect a pullback toward the April lows. It seems that pullback has begun.

As you know the market is way overdue for a correction. The S&P 500 has gone more than 900 days without a normal, healthy -10% pullback. I would not be in a rush to buy the dip here.

We can look at the market weakness as an opportunity since a correction would provide us much better entry points but we don't need to try and catch any falling knives. Better to let the market show us the bottom than trying to pick one.

Let's take a step back and see how the market reacts to a busy week of economic data, the FOMC meeting, and the threat of Russia invading Ukraine.