We have breadth running worse than two to one negative this morning, and biotechnology is seeing increased volatility, but the dip buyers are lurking and keeping some bids under the action. Precious metals are leading, but quite a few of the speculative small caps that have run up lately are seeing profit taking.
At this point it continues to be nothing other than trading range action. The bears like to believe that any weakness is a sign of a major top, but there isn't any reason to jump to that conclusion at this point. In fact, it is rather refreshing from a trading standpoint to see some ebb and flow, rather than one-way action.
My goal at this point is to simply manage positions that I have. I've sold a few things this morning, but have been a buyer of gold plays such as Seabridge Gold (SA) and DRDGOLD (DRD). DRD is setting up very nicely, but is a slow mover that needs to take out a $4 seller.
The indices have rolled over again, and are threatening the lows of the day. The SPDR S&P 500 ETF (SPY) has support around $204. A breach of that level should trigger some sell stops.
I'm not too worried about a major top right now, but I'm protecting gains and will give the bears a little room before looking for some new long entries.
Gold mining is looking good, and I'll be adding to those names.