A correction is starting just as the new month begins. It's like I said yesterday; "Who knows where news will come (from) to either rally stocks or knock them down." With markets overbought and poor economic news being repeated again (today from a worse than expected ISM number and, surprise, poor housing data) it was easy to push markets down. We'd rather them go sideways, and by the end of the week that may prove the case, but we're not in charge.
Bond and stock investors will be looking ahead now to Friday's job report for signs of further weakness. Previously weaker than expected numbers have been greeted warmly by stock bulls who believed the Fed wouldn't raise rates. They may now sing a different tune "if" jobs data indicate an economic "hard" versus "soft" landing.
The day started off nicely enough, but now with October window-dressing complete early, November may prove a time to correct. The employment data will have an impact on Friday.
Have a pleasant evening.
Disclaimer: The ETF Digest maintains positions in: S&P 500 Index (SPY), iShares Lehman 7-10 Yr Treasury Bond ETF (IEF), iShares Lehman 20+ Year Treasury Bond ETF (TLT), PowerShares Dynamic OTC Portfolio ETF (PWO), Utilities SPDR ETF (XLU), iShares Dow Jones Select Dividend ETF (DVY), Software HOLDRS Trust ETF (SWH), iShares MSCI EAFE Index Fund ETF (EFA), iShares MSCI Canada Index ETF (EWC), iShares MSCI Australia Index (EWA) and iShares MSCI Emerging Markets ETF (EEM).