I think we are going to get a pause. I do think that the Nasdaq has clearly overshot the fundamentals.

Just to avoid that, we are going to pause until things are clearer.

What's important for investors to realize about the Dow is it's not just steel stocks and industrial-related stocks. There are growth stocks. There are financial, entertainment and industrial stocks. So when one sector isn't doing well, another sector may be doing well. And that's exactly what's propelling the Dow.

There are a lot of gut-wrenching, earnings-driven disappointments that you have to wade through to be able to come out the other end,

I constantly hear the market can't keep going higher, that this advance has gone too far to fast and that a major decline is imminent. But every time I try to find an indicator to make me want to sell, I find something that makes me want to stay long and get longer instead.

Instead of being a new bull market starting, this is just an oversold bounce from the downtrend. The sharpest rallies occur in bear markets and right now, everybody is like a deer caught in the headlights.