The bears quickly concluded that this so-called "bad action" on a day that by all counts should have been an up day, will be enough to create a pivot point for the market. A point from which our furry friends fully expect to see the indices dive with reckless abandon from here.

But before we don the uber bear costume and begin to gather provisions for the coming storm, we should probably keep in mind that (a) one day does not a bear market make and (b) the drop of 50 points takes the Dow all the way back to where it stood just before lunch on Monday. Thus, while we will readily admit that stocks are due for a pullback lasting more than a couple of hours, we are of the mind that it is probably a good idea to hold off on the doom and gloom chatter for a day or so yet.

To be sure, the bulls had an opportunity to stab yet another dagger into the hearts of their opponents yesterday. While the most recent breakout was readily apparent on a chart of the venerable DJIA, the squiggly lines of the S&P, NASDAQ, Russell, and Midcap indices didn't make the case for a clean break having taken place. So, with yet another impressive display of execution from Apple (AAPL) and a report from Caterpillar (CAT) that nearly caused the earth at to shake at the corner of Broad and Wall, those seeing the glass as at least half full might have expected some fireworks to the upside yesterday morning.

However, a funny thing happened on the way to the celebration. Instead of the greenback continuing to fall and, in turn, the fast money crowd continuing to play their favorite trades derived from the demise of the dollar, our country's currency took an odd turn northward. So, despite the long list of companies sporting EPS numbers that easily cleared the relatively low bar of analyst expectations, traders appeared confounded by the dollar's move up and were thus unable to play their usual game.

To be fair, the bear camp did enjoy the benefit of a report on housing starts that was weak enough to raise some questions about the veracity of the recovery. And the PPI report wasn't exactly bullish either. But the bottom line for yesterday appears to be that without the lower dollar/higher commodities trade, stock traders didn't quite know how to act.

So, will yesterday's "bad action" be the precursor for a dance to the downside or just another day off for the bulls? Only time will tell for sure, but a pause in the run for the roses makes some sense right about now.

Turning to this morning, we don't have any economic data to report before the bell. But we will get the Fed's Beige Book at 2:00 and some Fedspeak from Lacker and Rosengren this afternoon.

Running through the rest of the pre-game indicators, the foreign markets are down across the board with European Bourses off by 1% or so. Crude futures are pulling back with the latest quote showing oil trading off by $1.26 to $77.86. On the interest rate front, we've got the yield on the 10-yr trading at 3.39%, while the yield on the 3-month T-Bill is currently at 0.07%. And finally, with about 45 minutes before the bell, stock futures in the U.S. are pointing to a lower open. The Dow futures are currently off by about 35 points; the S&P's are down about 3 points, while the NASDAQ looks to be about 4 points below fair value at the moment.

Have a great day and until next time, "may the bulls be with you!"