We have some choppy action this morning as the dip buying failed to push the indices into the green but early lows are holding and breadth isn't terrible with about 2600 gainers to 3950 decliners. New 12-month highs is only around 80 but the good news is that there is some stock picking that is working well. This is not an index driven sell-off so not everything is moving in tangent right now.
The primarily justification for this pressure is rising bond yields but the movement in many of the bond instruments is quite sedate IShares 20+ Year Treasury Bond Fund (TLT) is still well above last week's lows and isn't suffering any serious technical damage. One of the cushions here is that higher yields are attracting inflows and that is offset the selling to some degree. The dollar is strong today and that is due in part to foreign inflows into the higher yielding bonds.
The interest rate dynamic is likely to be a continuing issue, but the good news is that traders aren't being scared away from stock picking. On my radar this morning there continue to be good actioni in biotechnology names like HTG Molecular (HTGM) , Zogenix (ZGNX) , Dicerna Pharmaceuticals (DRNA) and my 'Stock of the Week', Viking Therapeutics (VKTX) .
There is good reason for more pressure on the indices but the individual action has been offsetting the problems so far. Whether that lasts we will have to see. Manage your positions well and that should keep you out of trouble.