The S&P dropped 2.7% this past week to end at 1925, but technically this was a needed correction and nothing more. A continued drop past 1905 will likely indicate a medium term correction, and a continued drop past 1841 will indicate significant long term changes. The technical model is still indicates that Medium and Long term periods are fine.
Conventional wisdom is that Bonds will begin to drop as the Fed stops creating the added market for bonds and we get a subsequent increase in inflationary pressures. While this has been widely anticipated for months now, AGG and TLT are resisting that pressure. Bonds continue to be a hold per the model.