The losses are still quite mild, but the indices are slipping a little bit and breadth has turned negative. A pullback in oil, precious metals and mining is causing most of the pressure. Those groups have had very strong momentum and led on the way up and now they are finally seeing some profit-taking. I don't think they are finished but they need a rest.
Financials have also slipped, but biotechnology is holding and there really isn't any major weakness to be found. We're just churning a bit and the dip buyers seem to have calmed down a little.
What you need to keep in mind about this action is that it isn't a major reversal at this point. The buyers will jump back in very quickly at the first sign of any strength. They are still far more worried about missing out on upside than they are about being caught in a downtrend.
We always have to play the hand that the market deals us, but I find myself rooting for some bouts of weakness as they help give us better opportunities. There are opportunities when we are going straight up, but the setups tend to have higher odds when the market is moving in both directions.
There are some important earnings reports after the close tonight, including Google (GOOGL), Starbucks (SBUX), Skechers (SKX) and Visa (V), which should shake things up a little, but I'm not sure anything is going to be a major market mover this quarter. We have structural and macro issues driving us and fundamentals are mostly irrelevant. (Google, Starbucks and Visa are part of TheStreet's Action Alerts PLUS portfolio.)
I have some personal business to take care of later today and tomorrow, and since I'm not going to be watching as carefully as I normally do, I'm less inclined to do much adding at this point. There are a few things of interest that I'll be looking at, but for now I'm just watching the market tread water and the news channels talk about Prince.