After the breakout move on August 27 and some strong upside follow-through it isn't too surprising that the market is finally pulling back. So far it is fairly mild action but breadth is running 2 advancers for every 5 decliners so it is broad selling. The number of new 12-month highs is down to around 280 while new lows have expanded to 180.
There doesn't seem to be any major themes at work. The FAANG names are still acting well with Amazon ( AMZN) and Apple ( AAPL) in the green but Facebook ( FB) and Alphabet ( GOOGL) in negative territory. The speculative biotechnology names are taking a rest and individual stock picking in general isn't working too well.
Despite the hopes and dreams of the bears, this action is not meaningful. If anything, it is a healthy pullback in a market that was a little overheated. There are no signs of a rush for the exits and there are still plenty of folks that are happy to buy the dips.
On my screens some of best action I see are in names like Sarepeta ( SRPT) , PetIQ ( PETQ) , Pinduoduo ( PDD) and Livevantage ( LFVN) . My stock of the week, Pure Storage, ( PSTG) is breaking to a new all time high.
It isn't a very exciting day on the long side but it is healthy action and sets up the market for more upside.
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The key technical issue now is that the indices stay above their opening lows.
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