After a 7 week run up, we finally had a consolidation week. Markets were flat most of the week and finally succumbed on Friday. Supposedly, Friday was down due to continuing problems with the Greece debt deal. I prefer to think this was simply overdue and Greece was the excuse. Most indexes are significantly short-term overbought, and near important resistance levels. Furthermore, sentiment has become quite bullish. So the market pulls back – just as a healthy market should. Not sure exactly how this plays out, but I doubt that it would be more than 5-6% for most markets, or last more than another week or 2. There's even a possibility it was just a 1 day wonder and markets resume climbing this week. Crystal ball is just not clear on this one, lol.

If the pullback does continue this week, it will result in a trend break on several indexes. But a break of the first up move is usually not critical – much less significant than a break of a long term trend line. So until proven otherwise, I think there will be another up leg once the consolidation ends.