Editor's Note:

No new trades tonight for the Premier Investor newsletter.

The path of least resistance has been higher for weeks. The market has been overbought and remained overbought shrugging off all headlines. Suddenly traders are taking profits. Today the excuse was crude oil and how lower oil prices were a reflecting of falling demand due to slowing economic growth.

The strange thing is that the "market" has known about slowing economic growth around the world for months. The U.S. is one of the few areas actually showing growth.

The current pullback in the U.S. market might be just a blip. This is the most bullish time of year for stocks. We can imagine stocks releasing a little steam from a market that got a little too hot. Once it cools a bit the rally resumes. The average hedge fund manager has drastically underperformed the market this year (again). These managers will be desperate for some last minute gains but nothing is guaranteed.

I expect the market to bounce but the S&P 500 might have to test round-number support at the 2,000 level first before we move higher.