The gap-down open attracted some dip buying but it didn't last for long. The nature of corrective action is that bounces fail and then the recent lows don't hold. That is what a downtrend is all about.
Breadth is not bad with around 3200 gainers to 4000 losers but new 12-month lows have expanded to around 140 names and there is heavy pressure on SPACs and biotechnology which have been recent favorites. FATMAAN names are steady but there is no sustained speculative chasing taking place right now. Traders were mostly focused on bounces and they have made some quick exits already.
My game plan right now is to develop a shopping list and focus on trading around positions that I want to own longer term. Some of the key names on my list right now are (NLS) , (XERS) , (TCNNF) , (BGFV) , (PSNL) , (OCUL) , and (HZNP) .
One name I'm actively trading this morning is Forum Merger II Corp (FMCI) which is a SPAC merging with Tattooed Chef. The company needs a vote to approve the merger and while there was over 90% approval, not enough people voted so the final vote had to be delayed, Many SPACs have a provision that provide that failure to vote is deemed to be approval but FMCI did not have this provision. I believe they will fix the problem and I've been a buyer this morning.
Many of the other SPAC names are coming back as well and as I discussed in my opening post, this is not a market with a lot of very extended stocks so the chances of catching some names at support are good.