Bulls and bears had been hoping for a pullback for some time. When the market is uptrending, the idea of weakness to set up better entry points is appealing. But when we actually see selling, many wonder if it's the start of a major turn. Pullbacks have a way of feeling like turns rather than just a temporary setback.
Today is also one of those days where the indices don't fully reflect the weakness. The stocks hit the hardest today have been recent winners. Breadth is about 2-to-1 negative and the list of new 12-month highs has shrunk, but it is the close that counts.
The Fed minutes were just released. There was initial selling as a number of members seem resistant to additional quantitative easing. This market has lived off QE for four years and you have to wonder what is going to happen if those cheap funds dry up. The news is causing additional pressure on precious metals, which have been major laggards lately.