The market is in correction according to IBD.  I would say that cash is probably the best place to be right now.  The market is extremely oversold according to two of the indicators I watch.  Let’s take a look.

Here they are from our friends at the FDIC.
#10
First National Bank of Georgia, Carrollton, Georgia, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Community & Southern Bank, [...]

Press Release
Release Date: January 27, 2010
For immediate release
Information received since the Federal Open Market Committee met in December suggests that economic activity has continued to strengthen and that the deterioration in the labor market is abating. Household spending is expanding at a moderate rate but remains constrained by a weak labor market, modest income [...]

The market has topped for the near-term and probably the intermediate-term. For me, intermediate means up to a quarter. We’ll know in time if it is longer than that. Many are blaming President Obama’s numbskullish rhetoric against the banks for causing this. To be clear, that did not help… but the market was topping anyhow. [...]

Here is a video from Adam Hewison at MarketClub.
 
Click here.