(Intel) is down but not out. We have a very nervous market and it's the dog days of summer. We are short-term overbought so we're giving some of it back with the excuse being Intel.

The market was subject to a very normal pause to refresh. Why not ? Bonds have been up big. The market had been up big. We were vulnerable to good news, bad news, no news. The underlying bull market remains very positive.

The first week of August hangs at the very top of the summer, the top of the live-long year, like the highest seat of a Ferris wheel when it pauses in its turning. The weeks that come before are only a climb from balmy spring, and those that follow a drop to the chill of autumn, but the first week of August is motionless, and hot. It is curiously silent, too, with blank white dawns and glaring noons, and sunsets smeared with too much color. Often at night there is lightning, but it quivers all alone. There is no thunder, no relieving rain. These are strange and breathless days, the dog days, when people are led to do things they are sure to be sorry for after.

The best stimulant you can have for a market is an 'up' market, and it feeds on itself. The market is 90 percent emotions, and the mood shifted.

We have been and we remain in a very powerful bull market, ... in near term basis, the market has come long way in short period of time? and odds favor a bit of a time-out in the next week.

The market has done a good job of ignoring signs we have bottomed. That's more a ghost of the bear market than any disbelief in the numbers. A dog that's mistreated doesn't trust a hand extended in kindness. This will change.