Oh, calm down. Worries about an imminent correction are a bit overblown, at least at this point.
The S&P 500 hit a 15-month high of 1150—on Tuesday! It is currently trading at 1125*, which is a decline of 2.1 percent from its recent high.
*(as of this writing.)
A correction is a decline of 10 percent—the S&P would have to drop to 1035 to be in that territory.
There are two reasons for the decline today:
1) nervousness over the Obama speech at 11:40am ET is hurting financials (SeeArt Cashin: Bank Investors Are 'Worried' Now);
2) continuing selloff in materials, energy, industrials (global stocks) on a belief China will soon be raising interest rates to cool off their economy.
China's GDP grew at a 10.7 percent rate in the fourth quarter compared to the same period a year ago. Deutsche Bank told clients they believe China will likely hike interest rates in the second half of March.
Philly Fed much weaker than expected (15.2 vs. 18.0 expected) may also be a factor at the margins.
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