We have "gap and slip" action as the opening strength is producing some selling. Small-caps are lagging and the other indices are hovering at lows of the day. Breadth is still positive but well off the two-to-one positive levels that the market started at.
The bulls were downright giddy on Friday as the market shook off four days of intraday reversals and poor closes. The bullish theme has been that interest rates and inflation are still not an issue and various Fed members backed that up.
Fed Chair Jerome Powell is in front of Congress Tuesday and there is probably some concern that he may not be as wildly dovish as some nonvoting members such as St. Louis Fed President James Bullard.
As I discussed last week I have been a net seller and raised a substantial amount of cash. I don't see many charts I like at this point and am not inclined to chase strength. It isn't bad action but the opportunities that existed following the big pullback have dried up and now you have to be willing to chase if you want to establish new positions.
I'll keep looking for some new buys but my confidence level is low based on my review of the charts of individual stocks.