Full-Blown Correction Under Way...

We called it right. This is more than just a blip, squall, or whatever the inane buy-the-dippers want to call it. This is a full-blown correction, which is well on its way of taking the SPX down to its bull trend line at 1225 (cash)... The break of that will probably freak out a lot of the CNBC pundits and the retail trader community alike. In fact, there has been a tremendous increase in the volume of odd lots traded lately on all the major exchanges -- implying that your average Joe Schmoe is pulling their hair right about now, stopping himself out... Back to 2000 anyone?

Let's not forget it's also World Cup time (that would be soccer, for those of you living in a cave). If history is any guide (2002, 1998, 1994, etc), this "blip" (I call it full-blown correction), has more legs to run. Don't catch a falling knife. Watch emerging markets for guidance. Once they stop falling, it may be time to finally ship some risk in. Until then, don't touch this treacherous market.