The big danger today was that news on the progress of China trade would trigger a "sell the news" reaction. The market has been running up in part due to speculation that progress has been made, but it has become overbought after the huge bounce starting on December 26.
A news headline from Dow Jones hit that said "U.S., China negotiators narrow differences on trade, but two sides still not ready to conclude a trade deal." This seems to have triggered the "sell the news" reaction.
I've cut a number of positions into this news and have taken some ProShares Ultrashort S&P500 (SDS) . My timeframe is short and I'm expecting that there will be some nearby support, but we are at a juncture now that if you had some recent gains, you need to be aggressive at protecting them.
One speculative play on my radar today is Axsome Therapeutics (AXSM) . The company had good news yesterday, priced an offering a bit over $8 immediately and has some recommendations with substantial targets. Sometimes in a difficult market, traders gravitate toward a smaller group of stocks and I believe AXSM may be one of them.
Time for some stout defense as the 'sell the news' reaction takes hold.