The character of the market action is shifting this morning as a higher level of caution takes hold. The dip buyers showed up at the open but their conviction was limited and stocks are rolling over. Technical traders will be watching for the opening lows to hold. If they don't then there will likely be some sell stops triggered.
Breadth is running quite poor at more than 3 to 1 negative so there is some correlated selling but it is not panicky so far. The selloff in Fastly (FSLY) is not spilling over to a great degree so far but there is concern about valuations now in some of the high flyers.
There are more new 12-month lows than highs today for the first time in a while. 12-month lows are not expanding yet but we will need to watch that to see if we start seeing some sectors fall into deeper corrections.
I have a long list of stocks that I'm interested in buying as they develop but so far this morning I have little interest in putting cash to work. The drops are not severe enough to make me confident that there will be a strong bounce and many stocks still don't have much support.
One name I did add this morning was Walmart (WMT) which I view as a safe haven in which to park some cash. It isn't going to be a momentum mover but it should hold up well in a difficult environment.
It is a good time for some patience and that is my main focus.