Overbought market conditions can be corrected by pullbacks or by churning. This market is experiencing the churning approach so far. The indices are doing very little but breadth is running about 2650 gainers to 4000 decliners compared to flat action yesterday.
There are a few pockets of strength, the most notable of which is banks. Apple (AAPL) is trading flat and is representative of the overall market action.
While this action isn't offering much in the way of opportunities, it is healthy. The longer it persists the greater the risk that some folks will grow weary and move to the sidelines, but there are signs of dip buyers and there doesn't seem to be any rush to embrace the bearish narrative.
I had a couple stops trigger this morning but I continue to hunt for new buys. One name on my radar is Luna Innovations (LUNA) which manufactures fiber optic products and saw revenues grow 72% over last year.
There isn't much to do right now but the technical action is developing well and I expect to see solid support levels hold up well.