I’ve been writing about Wall Street “rubbernecking,” the goings on in Washington, D.C. for a couple of weeks now, and today, the rally ran off course from an abundance of anxiety that had largely been held in check.  

Today, we saw the rally fade quickly. This has happened more often in recent sessions, whereas the script had largely been once stocks turned higher, the train was leaving the station, and so the crowds moved to get on board.  

I must put action today into proper perspective.  

Stocks go down from time to time, and in fact, when they do, it belies the notion of irrational exuberance. It will be interesting to see how much buying occurs on this dip, but there is already some nibbling. We don't need to force the issue here, but I've been looking out for subscribers looking for a dip to buy. 

I'm interested in how the market closes. The big test for me is the wobbly session that finds a way to turn intra-session and eclipse the earlier high point of the session -that would be a huge buy signal. For now, understand paper profits are huge, in the trillions of dollars, so losing a few billion wouldn't be a cause for alarm.

As for the drama in Washington, D.C., it’s real. There are committed conservatives that are being pressed to vote against their conscience on Obamacare repeal and replace. I suspect enough will blink at the end of the day, but I hope there are even more concessions to conservatives.

Key Support

I would hope a 2,350 hold for the S&P 500, if not, it’s not the end of the world but could signal more downside.

These pullbacks create opportunity, so make sure to have cash, and be ready to ponce, as the most critical element of the market is the rapidly improving underlying fundamentals.