There is some rotational action taking place with money moving out of some of the FAANG and technology stocks and into lagging groups like financials ( (XLF) ETF) and energy ( (XLE) ETF). The gulf between "value" and "growth" continues to grow and is now at one of the most extreme levels ever so it isn't too surprising to see that sort of rotation take place.
Under the surface, breadth is strong with around 4,500 gainers to 2,650 decliners but there is a definite slowing in momentum. The number of new highs has dropped to around 150 and my list of stocks that are up over 10% on the day is significantly shorter.
While there is some shift in the character of the market action, it isn't having any major impact on the indices. There is quite a bit of choppy and sloppy action and still some good pockets of trading if you are selective.
This has been a very tough market for timers trying to catch some downside. Given the combination of overbought and extended stocks and the negative news flow, it seems logical that there would be at least some temporary pressure but the dips have been so short-lived as to be nonexistent.
I've been trying harder to catch a reversal but it has been too much work so far. Stock-picking is where the action continues and is the place to be. However, after a big week, there is an inclination to lock in gains and wait until next week before doing much.
There is some shifting in the character of the market but it isn't enough to cause any real disruption so far. The trend is still up and stock-picking is working. The dire Covid-19 news is still being ignored and you have to wonder what it will take for the market to view it negatively.