The question of the day is whether the sellers can build on yesterday's sharp intraday reversal. So far we have some choppy action as dip buyers try to catch some bounce but it is losing steam quickly. I'm not seeing a lot of strong underlying support and hot groups like SPAC are trading quite poorly but the rotational action is providing support.
Breadth is running about 3 gainers to 4 losers which isn't bad but weakness is in FAANGs and other recent leaders. There is some interest in 'value' names in energy, industrials and healthcare but its 'safe haven' buying and unlikely to develop into new leadership.
I'm a buyer of some select names on weakness but so far there isn't much that is enticing me. I added a position in Myovant Sciences (MYOV) and am eyeing a few other biotechnology names as well.
The good news right now is that selling is not highly correlated. If breadth becomes more lopsided that will indicate that there is greater concern about the overall market environment. Right now it is mostly rotational action. Action late in the day will give us a better feel for overall market sentiment. If we start seeing late day weakness it will indicate a change in character. The bears are hoping for a collapse but it looks more like a reshuffling than a rush for the exits.