Yesterday was quite a day. The market took one of its biggest plunges in history on a combination of several pieces of data which caused the market to take a breather. Greenspan is talking possible recession, the Shanghai Index dropped 8.8%, Durable Goods Orders came in much lower than expected, and earnings are nowhere near as bullish as they have been in recent quarters.

In my opinion, this was a healthy move for the market. In all bull markets, it is necessary to take a breather from time to time. That was simply what took place yesterday. Granted this move was a little more than one can classify as "a breather," but it was necessary nonetheless. I do not suggest jumping right in the long side here...not at all. Rather, watch for a couple days and see how the market behaves.

There was a lot of psychological reaction built in to yesterday's sell off. Now that Traders and Investors have had a chance to step back and look at the big picture once again, I think they'll realize that the economy is fine. This sell off was simply a necessary move in a market that has been doing nothing but trending higher on "so so" data. We may see a more neutral environment from here, but by no means do I think this is the first step towards a bear market environment.

Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.