It took about 30 minutes for the "dippers" to finally show up and have the S&P 500 back close to its opening levels. There is still plenty of red on the screens with breadth running about 1,900 gainers to 4,800 decliners but the initial panic-selling has dissipated and calmer buyers are now at work.
The primary catalyst for the early selling was a combination of overbought technical conditions and a jump in interest rates. Increased rates strengthened the U.S. dollar and a variety of repercussions ensued such as a decline in precious metals and some commodities.
Technology names bore the brunt of the early selling with cloud computing and FAANG names taking some hits. Big-cap China names are also under significant pressure.
The key for the overall market now is that it hold above the early lows. If the intraday low is breached that will trigger another round of sell stops and embolden the bears. Right now, this is simply a pullback within an uptrend and hasn't advanced to the stage of being anything significant.
Market players too often forget that healthy markets go up and down. Pullbacks are a necessary ingredient as they allow stock rotation into new, stronger, hands.