The bulls will argue that of the record gains yesterday, today’s lower close is just a rest stop before another surge higher. Take a look at the breadth chart below and you can see that it was a battle today and the bulls did hold their own for the most part. However, the bears suggest that we will test the lows again before moving higher. Stick with the technicals and verify the moves made and then form your opinion.
There is a lot of data coming out tomorrow in the form of reports and earnings so look for increased volatility. The two big economic reports are the PPI and the retail sales and both of those come out an hour before the markets open. Earnings to look for from JPMorgan Chase and Wells Fargo, both before the markets open as well.