This may be the correction that so many people are looking for. It could be a great buying opportunity.

1. The yield curve is still steep - especially the 3-mo./10-yr. spread.
2. The VIX , which increased an unusual 4 points today, is still in a normal range.
3. The put/call ratio is still in a range that supports owning equities.
4. Bond quality spreads, after widening for one day, are continuing to narrow.
5. Fed funds maintain their 0.15% level during QE2.

Importantly, Saudi Arabia has said it will supply enough oil to make up for losses from Lybia - the only OPEC country so far with civil unrest.

S&P's famous strategist, Sam Stovall, says, "The Energy Information Admin. (EIA) reports that the major Gulf countries in OPEC (ex. Libya) have spare capacity of 4.4 million barrels per day. According to IHS Global Insight, if WTI crude oil prices rise above $100 per barrel, then OPEC is likely to counter with increased production."