There is broad selling Thursday morning, with around 1,200 gainers to about 5,900 decliners, and there are no safe havens at the moment. Small-caps (IWM) and the DJIA (DIA) are leading to the downside while the Nasdaq 100 (QQQ) has a little relative strength.
What we are seeing here is a market that is already anticipating a "sell the news" reaction to the major earnings reports after the bell. Rather than wait for the selling on the "good" news, market players are heading for the exits now and, in many cases, will be looking to remount on weakness after the news.
This is the broadest selling we have seen in a while but it is still routine corrective action after a good run. The pockets of action are thin again and the early momentum fizzled out fast, However, there are plenty of "hot money" traders still looking for their next trade. Action of this sort does not scare them aware very quickly.
I've done some flipping into strength but I'm not seeing any major breakdowns in my positions so far. On Wednesday I provided my biotechnology shopping list and, for the most part, the pressure on those stocks has lifted. There isn't any big bounce but there is some good support forming.
I continue to stick with aggressive short-term trades, especially when I can find a good theme, althought right now most things are resting.
This weaker action is going to give us some better setups if we keep hunting.