The bulls have done a nice job of delaying it, but some profit-taking is starting to kick in now. Apple (AAPL) is what's leading the action, and now that the selling has started to kick in there, it is spreading to the broader market.
Breadth is just mildly negative so far, but the reversal of the positive early action is giving the market a negative tone. As I discussed in my opening post, there are just too many stocks that are extended and not offering very good entry points right now. Apple is probably the most obvious example.
Just because the market is pulling back doesn't necessarily mean that this recent bounce has ended. In fact, the indices need to back-and-fill and consolidate in order to build the foundation for a further thrust higher. If the averages start to break some key support levels -- like 1384 on the S&P 500, which is the 200-day simple moving average -- then we might worry a bit. But that is long way to go from current levels.
I'm playing a little defense this morning and trying to protect some recent gains. I have few small trades going, but nothing more than a fairly fast flip. One stock I'm watching, and have as a technical buy, is First Solar (FSLR). There is a big short position there, and if the stock can take out that $26 level, it should squeeze. I'm just tracking it now, but that is one I'd look to add if the market action improves.
Take it slow, and let the setups develop.