The market is on fire and with sentiment so bullish there is every reason to expect more upside, ... There are clearly many traders who are betting on an autumn rally to take the Dow to 10,000, and they positioned themselves in the market yesterday.
The slide in the Nikkei just goes to show how deeply overbought these markets are. Players have been caught up in the euphoria. Now it's time to face reality.
...this kind of sell-off is bound to affect the market for some time and we may very well see the market trade lower over the coming weeks or at least trade sideways without making new highs.