The S&P 500 is trading down around 0.5% at midday, while breadth is running just slightly negative. The action looks like it is primarily driven by the S&P 500 index rebalancing, which is pressuring a large number of stocks as the indexers make room for the addition of Tesla (TSLA) .
The Russell 2000 fund (IWM) has now doubled off the March lows, but small-cap action remains very strong. We have 850 new 12-month highs today and my list of stocks moving 10% is quite long. While there is nervousness about how extended many stocks and indices already are, it isn't stopping the buying of individual stocks with good stories, fundamentals, or charts.
I've made this point quite often recently, but it is worth repeating. The "easy" thing to do in this market is to predict that it isn't going to keep running higher. The hard thing to do is to keep looking for long trades and to keep pressing. Typically, the hard thing pays better than the easy thing.
I'm still digging for new buys and am pleased to see there is quite a bit of positive action. A few names I've added this morning include, Magnite (MGNI) , Pacific Ethanol (PEIX) , Elys Game Technology (ELYS) , Gamida Cell (GMDA) . Lithium Americas (LAC) , and Forum Merger II (FIII) .
The S&P 500 is turning up as write this, but I expect to see some volatile action into the close as option expiration and indexing moves come into play. Don't try to read anything into the action. Stay focused on the good charts and positive price action.