Hoping for Some Buyable Pullbacks

 | May 17, 2017 | 1:03 PM EDT
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The indices are seeing one of their biggest selloffs of the year, and it's creating a little hysteria in the business media. Despite all the breathless reporting since the election, the market hasn't cared one bit about the political battle. Today we are finally seeing a little reaction -- and that is like a shot of adrenalin to reporters.

From a trading standpoint, it is refreshing to finally have some decent downside action. This market has never developed the volatility that many thought would occur when Trump became President. Instead, we have had some amazing runs of nearly no movement at all.

A few big-caps have been driving a market that has been very mixed under the surface, so it actually helps give us more clarity when we finally do have a shakeup like this. This is a quite a change in character so far, as we are hovering around the lows of the day on very broad selling. If we go out near the lows of the day, the odds of some downside momentum are going to increase quite a bit.

Playing defense has been a lost art in this market for a long time. If you have taken defense measures at the first sign of weakness, you quickly find yourself forced to chase strength to put money back to work. There simply hasn't been much opportunity to gain an edge by trying to time some pullbacks.

I'm excited about some decent selling and more intense emotions. It is used to be a great source of new opportunities. Rather than machine-driven buying of every shallow pullback immediately, there may be an opportunity for a bit more strategy.

Is this the start of a topping process? Perhaps. We certainly need to be prepared to play more defense just in case, but this is good news for traders that want more opportunities. The potential for some good buyable pullbacks is finally developing.

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