Keep in mind that this May – October trading period is a period of a big top that becasue of the FED buildup will have more ramifications than either the 2000 or 2007 tops. So while the top will keep building, what happens after the top will be what is important.
At the moment everyone is watching Japan and its effort to piggy back on the Bernanke formula, and the last couple of weeks have not gone so well. We have the employment number coming up on Friday. ADP estimates the number at 135,000 but the effect of the sequestor on government employment might throw a curve ball.