The dip-buyers did a nice job of buying the early weakness, but the issue now is whether they will flip quick profits and kill the move. Breadth has improved to about 2-to-1 negative, but the buyers aren't rushing to take advantage of the weakness. And there are signs that defensiveness and profit-taking are accelerating. The dippers liked the obvious bounce trade, but they look like flippers and aren't very interested in sticking around.
I've made a number of defensive moves, taken some stops and lightened up on several positions. There are a number of stocks I'd like to buy at lower prices, like Cirrus (CRUS), Sarepta (SRPT) and Performant (PFMT), but I'm going to be patient. My goal isn't to buy them at the exact bottom but to buy them when they have the best chance of a sustained move higher.
A weak close today is going to stir up concerns, but strong underlying support has been a theme of this market for some time. While today doesn't look positive, it is just a minor hiccup within the bigger picture. No major support has been breached and the trend is still to the upside.
Nonetheless, protecting gains and playing a little defense is a good way to keep your portfolio near its highs, which should always be a primary goal.