The market is struggling with the fact that its biggest prop, the bond market, is not cooperating. Bonds are in a slightly downward trend. Until that works its way out, we're going to be in for a choppy market.

I think what you're seeing is a market that is clearly overpriced. Everyone knows it's overpriced. But we've been kind of whistling past the graveyard.

People are cautious. What hopefully happens is that the market corrects ... takes its time and lets earnings catch up to stock prices. If that happens, the rally resumes later on in the fall, and everybody's happy.

People are cautious. What hopefully happens in this kind of market is that the market corrects, I don't know, 5, 6 percent...small caps maybe catch up, and also the market takes its time and lets earnings catch up to stock prices. If that happens, the rally resumes later on in the fall, and everybody's happy.

The stock market, believe it or not, is finally acting rationally. The market itself, which is a collection of what everyone thinks at any moment in time, is doing what it should be doing... I think it's a very healthy correction.

If you short a stock, at some point in time, you have to go back and buy it, so while the act of shorting -- particularly in massive quantities -- tends to depress the market, technicians always believe long-term it's very positive because those people have to go back in and replace those shares.

In the middle of a correction, the market seeks to find a bottom and a top -- some kind of range that it can operate in comfortably. So you'll get wide swings as traders try to feel out where's the top, where's the bottom, where's support, where's supply.

Where the dealers are making a market with a wide spread, but have in their possession an order to buy stocks at a higher price than they're bid, or for a lower price than they're offering, they want the investors and the institutions to see those better bids and offers.

What you're seeing is the same old, same old: too much money chasing too few stocks.