The three major earnings reports that were issued prior to the open are being sold so far. In addition Europe is weak, China economic numbers missed and the University of Michigan Sentiment number was below expectations.
That it creating some pressure, but given all the negatives it is relatively contained. There isn't high volume or panic, but some of the recent bounce buyers are having second thoughts and the chasers, who were so active yesterday, have now backed off.
This is the sort of action that is much more typical after a quick oversold bounce and it will be better for charts in the longer run. We never seem to consolidate much in this market. We either go straight up or straight down and don't see much of the back-and-forth action that makes for good foundations.
We just made another intraday low as I write which is an indication that downside momentum is building. Breadth is running better than 3-to-1 negative and now traders are starting to wonder if a bounce can actually fail.
I am playing a few things short term like Cheniere Energy (LNG) but am mostly standing aside at the moment. The action the last two days was much better for creating short setups than longs and that actually seems to matter this morning.