After the recent breakout move on light volume, the market was extended and in need of some consolidation, which is exactly what we had today. Breadth was around 4:1 negative and volume was light, but overall, it was run-of-the-mill corrective action.
Precious metals where the only safe haven, which is something we haven't seen in a while. Stocks moved in lockstep again, but this time it was to the downside.
One of reasons that the selling kicked in is a widely anticipated sell-the-news reaction to the European Summit. It really is a perfect setup for profit taking as that news hits, but traders are always anxious to stay a step ahead so they started selling today rather than wait for the real news.
It didn't help that we had poor earnings from the likes of NFLX, FSLR, MMM and CMI. The news flow out of Europe was quiet, but that is likely to change tomorrow.