The futures predicted a weaker start this morning, but I wondered if the weak start would hold. It seems like the bulls have been very successful at recovering and pushing higher nearly every day. But that wasn't the case today. SPC closed down $8 at $1978, a reasonably modest decline, but RUT took it on the chin, dropping $21 to close at $1187. The NASDAQ composite also fell off significantly with a loss of $34, closing at $4452. Trading volume gains and losses are deceptive after a holiday weekend because the last day before the holiday is frequently a shorter trading session, and that is augmented by a large number of traders on holiday. Trading in the S&P stocks came in at 1.6 billion shares, up from Thursday's weak number, but well below the 50 dma at 1.9 billion shares. Trading volume rose 1% on the NYSE and rocketed up 71% on NASDAQ.

There wasn't any significant economic data reported today. The minutes from the last FOMC meeting will be released on Wednesday.

It seems like all indicators continue to be bullish for the market. In my opinion, we have a very weak economy, but the slight improvements we are seeing are being lauded everywhere. So today's pull back probably isn't anything more than a temporary slowing in the overall bullish trend. But I remain cautious. Trade bullishly, but protect yourself.