A quiet day of minor selling is what the market needed at this juncture if it is going to make another push higher. There wasn't any major negative news to trigger the pressure, but there are a few worries about the continuation of elevated unemployment and tension between the U.S. and China.
While there is no shortage of bearish arguments, sentiment remains positive as the economy continues to slowly reopen. There is a great desire for a return to "normal" and that spills over into the stock market, even if there are still substantial economic issues to deal with.
Technically, there was nothing meaningful about the action Thursday. It is trading-range action and with a three-day weekend coming up, there is likely to be some positioning in anticipation of news development. There continues to be a positive spin to most everything that is thrown at the market and there is no reason to believe that won't continue.
One notable area of trading was the cannabis stocks, and I expect to see that continue as speculative traders look for some "holiday" trading.
The easiest mistake to make right now is to try too hard to make a market direction call. This is random, trading range action, and the best approach is to trade it rather than invest in it.
Have a good evening. I'll see you tomorrow.