The one logical thing about market action today is that the gap-up open was quickly sold. After a trend-down day and a close at the lows, a gap-up open the next day isn't what you'd normally expect. Of course, market players are used to this sort of randomness and take it in stride, although they do seem to be more skeptical of the upside than usual.
The indices are still in the green and breadth is running close to two to one positive but there are definitely opportunistic sellers out there. The biggest problem with this market recently isn't the selling but the lack of sustained upside. The buyers just aren't following through. While there is support that is holding and there isn't any major technical damage, the struggle for upside is worrisome.
I am staying intently focused on the price action and trying to trade what is in front of me. It's a challenge, though.
I've been adding to Yirendai (YRD) this morning following a solid report and I've also restarted Silver Wheaton (SLW) after an upgrade from an analyst this morning. I'm taking some ProShares UltraShort S&P500 (SDS) as I just don't trust the indices much.
I still have some individual names on my radar, particularly in metals and mining, but the chances of a breakdown in the indices is building.