Dip buyers are very hesitant to step up following the gap-down open. The problem is that the market is still struggling with significant uncertainty related to Omicron. If the main reason for the weakness was the failure of the BBB bill and a hawkish Fed, then the market could probably have bounced back better, but the Omicron issue is still a mystery as to the ultimate economic impact.
Breadth is horrendous as it approaches 7 to 1 negative but what is most interesting is that there are only around 300 new 12-month lows. This is a sign that many of the small-caps and growth stocks have found support and are holding up relatively well. This is exactly the sort of relative strength that I want to see at this point.
I'm still biding my time and waiting to put more money to work. I remain optimistic about some strong action in secondary stocks, but we need to work through the Omicron uncertainty to a greater extent. The most important issue right now is to make sure you have some buying power on hand as things develop.