After another gap-up open on very strong breadth, some of the leading stocks became overheated and saw some profit-taking to end the day. Stocks like Apple (AAPL) , Fastly (FSLY) and Datadog (DDOG) have been up multiple days in a row, but they saw some pullbacks as buyers started to relent.
Breadth was still very solid with 4,700 gainers to 2,650 losers and there were 340 stocks at new 12-month highs, but it has been a very energetic run and some stocks looked a little fatigued. It is nothing that some consolidation can't fix. The important thing is to not read too much into some minor weakness. The market is entitled to rest after all the work it has done lately.
Keep in mind that the end of the second quarter is fast approaching and that there will be some massive index reconfiguration on Friday. That action is likely to help keep a bid under the market, but there is also going to be some very large re-allocations between bonds and equities as equity holdings have become too heavy for many pension plans after the big run this quarter.
The market and many stocks have become quite extended recently, but that doesn't mean that it is going to produce a sharp reversal. Overbought conditions can be fixed fairly quickly with some flat action and that is more likely than an sudden collapse.
There are plenty of end of the quarter cross-currents out there that have nothing to do with fundamentals that will come into play. Don't waste too much time trying to predict the impact of various headlines on market action.
Have a good evening. I'll see you tomorrow.