It isn't too apparent in the indices yet but there is a shift in the action today that requires some additional caution.
The S&P 500 hit a new all-time high. This has been much anticipated and seems to have triggered a 'sell the news' reaction. The indices are rolling over and have filled the gap created yesterday morning.
What is more worrisome is that speculative trading has suddenly dried up. There are only six stocks on my '10% mover' list which is the least I can recall in weeks. Market players abruptly stopped pursuing the low priced and speculative names that they have favored lately.
Many stocks need a rest and some of the frothy action needs to cool off, so this sort of action isn't necessarily a major negative but we need to watch to see if it builds. Some corrective action is definitely healthy but the pullbacks can still hurt if you are caught in too many.
I've taken a few stops this morning and reduced a few winners. I started a small position in cannabis play Curaleaf Holdings (CURLF) , but I am biding my time and looking for other pullbacks to develop.
There is a shift in the action today which may not be anything significant but it does require some increased emphasis on defense just in case it develops into something more significant.