Aussie market's up trend is about to break as US optimism struggles to support stretched multiples. Aussie markets has experienced profit taking cycles every 2-3 months over the last year. We estimate downside risk in the short term to be around 5-7%. High PE growth stocks will once again be tested while consumer (i.e. retailers and supermarkets) and financials (i.e. banks, asset managers and property trusts) will see collateral damage. Large caps like Banks, Big Miners, Supermarkets, Health Care and Telstra will have to experience pullback for the index to correct. Friday the 13th will see US financials get a reality check as Wells Fargo, JP Morgan, BlackRock and Bank of America are expected to report tonight after recent out-performance. US reporting season leads the local reporting season. Get your shorts ready!!!