Friday was a big win for the bulls. The market was down but only a small decline by day’s end was remarkable given the horrible employment report. Everything has become so extended lately that a pullback is actually a technical positive. Consolidation is needed in order to provide a solid foundation from which we can trend higher.
The problem with this pullback is that the news that is causing it really isn't very good. Today's news calls into question the entire bullish thesis for the recent move. It is pretty clear that the economic picture isn't nearly as euphoric as the market action earlier this week.
The Fed is rumored to be ready to launch QE3 in the fall.  Earnings will begin next week with Alcoa leading the way.