Right now the market is looking vulnerable to say the least.  Nobody knows if what we are seeing is a  short term run of the mill 3-5% correction or something a little more destructive.

I am about 80% cash and am willing to forgo the fact that in a week this might have been an excellent buying opportunity   We do not trade with the benefit of hindsight.  What we all have been watching for the last 2 weeks is momentum drying up and the wrong sectors leading.  I am taming my inner junkie and not initiating any new positions for the time being.  I am perfectly happy to watch and see where the market wants to go.  Having a heavy cash position allows you to see things more clearly, removing the emotions that are otherwise impossible to curb.

It looks like there is a vacuum down to 1475 which was the September highs and was tested 4 times in January before we broke free to multi-year highs.  This will also roughly coincide with the rising 50 day moving average which still gives bulls the benefit of the doubt.