The underlying action was worse than the senior indices indicated, but it was still a fairly contained pullback. Small caps lagged and there was some particularly harsh profit-taking in smaller technology names, but volume was very light today, and there weren't any signs of panic. All we've had is some light-volume consolidation, which actually looks fairly healthy, given that we were rather overbought at the open on Tuesday.
We are at a juncture where we need to wait for the market to give us some clues as to where it is headed. This minor weakness we are seeing now could easy develop into something more dire, or the bulls may step up and deliver another leg up after some healthy consolidation.
We have dozens of earnings reports coming up again tonight, but the only one with much market moving potential is V. Weekly unemployment claims in the morning will also be of interest, but the summer doldrums are setting in, and I'm afraid things are going to remain slow.