The indexes are still in positive territory and breadth is running better than two-to-one positive, but there has been steady selling all day and the indexes are now at intraday lows. There are plenty of recent profits to protect and that is what many folks are doing.
There is a tendency for the bears to read something dire into any level of selling, but this market can easily handle some pullbacks at this point. We had a classic breakout of a trading range on Tuesday and with the Fed now finished, there isn't an immediate catalyst. Nervousness over the situation with Iran is here, too, but that doesn't seem to be having much impact other than giving oil-related stocks a boost.
The important thing right now is to stay with the positive action until there is a shift in character. Don't be overly anticipatory. Just because there are some pullbacks doesn't mean the market is on the verge of disaster.
One issue that the contrarian bears are sure to focus on is the number of recent initial public offerings. A slew of them came on recently and that is something that can be construed as topping action.
The Slack (WORK) IPO today attracted most the attention, but there were six others as well. I took minor positions in WORK and biotechnology IPO, Personalis (PSNL) . The IPOs have offered some of the best trading in the market lately with Beyond (BYND) being a particularly insane example, but others like Revolve (RVLV) and Silk Road Medical (SILK) are examples of strong action.
We'll see how the market acts after this, but I'm not concerned that there isn't more aggressive chasing taking place. The market, and many stocks, are in good shape technically and some rest is well deserved at this point.