Here’s a run down of the bullet points that make me think the US equities market is headed for a 10% or greater correction:

  • With Money Market rates at 5% and the markets as a whole struggling to beat that return this year, I believe more and more people will consider keeping or moving money into these Money Markets and await a clearer direction in the market
  • Like I’ve said before, the Fed wants the interest rate to be as high as the system can bear it.? This is their main weapon.? I think it’s very telling that inflation is on the high end (2.7% inflation on the year, I believe) and yet the Fed isn’t continuing to raise rates.? Why pause?? Maybe because there’s a significant risk that the market cannot bear much more and the Fed needs to pull back to keep the markets from diving south.
  • It would take a serious push to get us back to the April highs, and I just don’t see where this capital’s going to come from.
  • We’ve had 3.5 years of a Bull market (although since May it’s been hard to call this a Bull), and we’re overdue for a pullback.

There’s more but these are the major points–I’ve got to post this partial entry before it grows stale.? I fear that the last 3 days were a last hurrah for the Dow above 11,200 and the S&P near 1300 in 2006.