Markets remain in a corrective process we've been discussing: A recent outside-reversal day saw the market opening up strongly and then falling significantly, completely engulfing the previous day's positive action.

Normally, that's a pretty bearish sign for prices. On Friday, markets rallied up to the 20-DMA and then failed, turning around to set a new low. That suggests we're going to retest the 50-DMA.

Markets are recently oversold enough that we could see an attempted rally back up to the 20-DMA. Another failure there would merely confirm that we're still in this process of correction.

There is nothing to suggest a large, 20% correction; the real concern at this moment is that markets just needed to take a break after five straight months of advances. A pull back at this point is a logical issue, and one that could provide entry opportunities for investors.

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