Everything has become so extended lately that a pullback is actually a relief. Consolidation is needed in order to provide a solid foundation from which we can trend higher, but the jobs miss that caused this pullback really isn’t very good at all. Today’s news question the entire bullish thesis for the recent move.  In the recent run up the dips had being scarce, but the tame VIX move left something more to be desired of the current pull back. 

There is also quite a buzz online regarding the Island Reversal candle stick formation that probably needs a few more days to resolve.  In addition, Alcoa reports Monday after the bell, and JPMorgan and GOOGLE on Thursday. While the economic calendar is light, we are likely to have continued debate over the U.S. debt ceiling issue, as well as the European sovereign debt problems.