The long awaited 1% drop finally came to the S&P500 and the divergences started to matter. We are already pretty oversold on a breadth level. Negative breadth had plagued the market for a couple of weeks. However the duration of the correction still feels short. Greece not being able to live up to its deal ignited more European debt concern. After so many meetings and behind the scene bailouts, I am surprised this is still not resolved. Maybe we just needed an excuse to take some profits. The long awaited first dip are here and the dip buyers must be salivating after almost 3 months of straight up action. Perhaps a bounce to relieve the oversold market before a retest of today’s low?
