If the characteristics fall into place, the quality of the market action falls into place.

Well I think some of the more defensive issues would probably perform in line with the market. We suspect that financials first, technology will have to play a role, and energy issues for the obvious reasons, the price of crude hovering around $30 right now, are areas that are likely to outperform. But I think to be successful we have to have participation across the board. That goes back to breadth indicators being real laggard of the internal equation for many, many months. So they not necessarily lag the market, but perform in line across the board, is going to be an essential element.

It was more of a mixed market than anything. The overall tone of the market has been sloppy It's disappointing.

I believe it's premature to take a defensive stance on the market at this time. As painful as this has been - and if you look at breadth statistics you get a little upset - I still think it's a temporary move. It's close to reaching an oversold condition.

We had nice strength early, and then bonds reversed and stocks followed. It's certainly a bit more choppy and wide-ranging than you would expect to see. The technical picture has eroded from positive to neutral.

I think the market has enough positives to get back to the upside shortly. We need to avoid any mistakes. I think that's the catch for today. The Dow breaking 7,600 would be a mistake.