After about 3 weeks of miniscule moves and little volatility, the market experienced its biggest drop since last September. The bears have been predicting for months that a steady stream of negative headlines out of the White House would be the catalyst for the long-awaited market correction, and probably the most surprising thing is that it took this long for the market to respond the way it did last week Wednesday. The question, of course, is if the market has lost its ability to bounce right back any Trump-related dip, or if what we saw mid-week was just a minor blip that will soon be forgotten.

Typically, when the market hits a quick air pocket at highs, the propensity is for a quick reflexive bounce as investors who have been waiting for any sort of dip eagerly hit the buy button. If there’s really been an underlying shift in the mood, however, it will take some time for that to show up, as traders start to think about making a more graceful exit.

Right now, the broader profile remains positive, but there have been some potential warning signs lately, and we’re facing some negative seasonality. The seeds for a potential correction are there, but whether or not we actually get one remains to be seen.

Let’s take a look at some charts





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