This article originally appeared on RealMoney.com on Sept. 4, 2014 at 4:21 p.m. To read more content like this AND see inside Jim Cramer's multi-million dollar portfolio for FREE... Click Here NOW.
Normally a surprise announcement of a European version of quantitative easy would set the market on fire, but this time the excitement fizzled quickly. The market started strong but, technically, it was just too extended on light volume and couldn't build momentum. We saw only a minor pullback in the indices but, again, the action under the surface looked very poor in places.
The bears' spin on the seemingly good news was that incremental action by the European Central Bank is too little, too late and won't do much to help the very poor European economy. At this point, there isn't much left in the central bank's bag of tricks. Of course, the fact that the market is overbought isn't helping bring in buyers, either.
Tomorrow morning the August jobs news will shift the focus back to the central bankers in the U.S. There have been more hints lately from Fed members that interest rate hikes might come sooner rather than later and the jobs news tomorrow will have some influence on that.
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In this market, it hasn't paid to be too bearish too quickly, but on the other hand the pullbacks in small-caps and momentum stocks can come very quickly and if you aren't a little anticipatory, you can take some sizable hits.