After a good start this morning, stocks have rolled over, and now the S&P 500 is testing the lows it hit on Wednesday. A lower low and a weak close would be a fairly significant technical development and give the bears some increased confidence.
Breadth is still up nicely with around 4,500 gainers to 3,400 losers but is slipping fast. The Russell 2000 exchange-traded fund (IWM) is still slightly positive, but is struggling to hold on.
Although many market players don't have much tolerance for the weak market action, a deeper correction is much needed at this point and will eventually help to create the conditions necessary for better trading when seasonality eventually improves. The setup for a correction right now is quite good, so let's do the job and get it over with.
Traders who fail to understand the ebb of flow of markets are going to be frustrated often, but those that embrace the inevitable ups and downs will find a steady diet of great trading opportunities.
I'm not doing too much right now other than a few quicker trades, but I have started a longer-term position in ClearPoint Neuro (CLPT) , which I will be discussing in more depth in the near future.
There are some landmines out there for day traders that are being too aggressive, so make sure you keep position sizes appropriate.