Sentiment is turning bearish as many fear the market bull run has run out of gas. The S&P is down to 1525 from nearly 1531 at yesterday's close and after 7 straight weeks of gains for the index, it is understandable why many are taking profits now. I don't feel that the sequester will be the start of a correction but rather a nice broad dip for buying. It seems that earnings are slowing but as M&A, jobs, housing, employment, etc are showing some signs of life again I cannot justify anything more bearish than defensive options for the near to medium term. After this dip, I would not be surprised if another 7 weeks of strong gains ensued in the S&P and associated ETF the SPY as we inch closer to all-time highs for the S&P.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.