The markets sold off a little today, led by the Russell 2000 ($IWM, $TF_F, $RUT) that took a 1.7% pounding. If you think back to the March through May sell-off it was the Russell that lead then too, so we might be in for a deeper correction. I saw no need to get short today into turnaround Tuesday, but I’ll certainly be keeping a watchful eye on the Russell for a while.
A market can correct either by selling off, or by consolidating for a while. We may be seeing the latter, with the Russell potentially trading in a range between $108 and $120. Until we break and hold either side, I’m going to consider this a trading range, or time based correction. Certainly something to keep a watchful eye on, as the Russell seems to be the canary in the coal mine right now.