Earnings season judgement.

The first quarter earnings season kicked off after the close of trading Monday when aluminum giant Alcoa (AA) reported quarterly results.
Alcoa posted net earnings of 37 cents per share, vs. 75 cents one year earlier, on flat revenues. Income from continuing operations, excluding restructuring and tax impacts, was 44 cents per share, below analysts' average forecast of 50 cents.

No big market-moving earnings are due Tuesday, with the focus instead on the morning's economic news. The February pending home sales index is due in the morning and the minutes from the last Federal Reserve policy meeting are due in the afternoon.
There are indications that some traders have discounted a U.S. economic slowdown and weak first-quarter earnings reports. The market is awaiting Tuesday’s release of the minutes from the March FOMC meeting for indications of what might happen at the Fed’s Apr. 29-30 meeting.
Tracking the Dow on monday,07/04/08
The major gauges struggled higher through the morning as investors welcomed corporate news, including the latest for the possible Microsoft-Yahoo combination and $5 billion investment for mortgage lender Washington Mutual.Rising oil prices stoked fears that corporate profits will suffer.
At 10:30am ET,Alcoa earnings results caused a Gap-down and later 30 minutes before closing another gap-down to compliment the headline.The closing bell was a small bearish marubozu,so the next day session will have a slight weaker start.
Hey,look at the 'sword of justice' formed on Monday.It can be translated into a Gravestone Doji formed from previous day's black body for bullish reversal since there's a long upper bull's shadow intact.
If it wish to form a bearish reversal Gravestone Doji ,it will cover back Friday's candlestick lower shadow.
So the market's pullback will not be so alarming since it's still hoovering above the bull's county.
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