I just see a bunch of contradictions right now. First and foremost, its the value proposition of this market. LinkedIn excluded, valuations are not stretched by any means of the imagination. Even the momentum names are in such a funk that they seem interesting.
From a pure market perspective, the SP500 is sitting on support and not overbought.
The greatest support to this thesis are the transports. The transports looks to want to keep rising, with a similar situation, bouncing off support and not overbought.
Goldman's down grade may have provided the extra push for the semis to go lower.
Then there is the VIX approaching the lows that have always made me uneasy. But I forced myself to remember my re-evaluation post, which suggests the VIX can very well go towards 10.
freight use growth.
Basically, the way I am playing it is to not hesitate to enter desired positions, but unloading some of others to maintain a cash level to be able to take advantage of unmerited declines. (And any serious market decline I will view as unmerited.)