Amazing how short covering a few billion in leveraged options can drive the markets up.. But now those positions have been covered and today's selling may be more of an indication of the true market mood. Monday's SPY Ponzo was less than enthusiastic going forward short term and there's mounting evidence that we're topping out ....at least for a bit.
So...do you buy the dip or wait to see if this amounts to the start of something? In very general statistical studies potential trend reversals moves "typically" run in 3 day cycles and if you subscribe to this view then buying the dip is a bit premature. Couple that with Friday's bias for being in the red >70% of the time and we're left with a neutral cash stance for now.