After a big two-day run, the indices are seeing some profit-taking this morning. Breadth is running 1800 advancers to 5400 decliners, and the number of new 12-month highs is down to around 100 from over 500 yesterday. Both Walmart (WMT) and Home Depot (HD) are seeing some 'sell the news' reaction to good reports.
The good news is that there is some dip buying support and several 'hot pockets' of strong speculative action. Bitcoin (GBTC) continues to trade strongly and that is creating some sympathy buying for secondary plays Riot Blockchain (RIOT) and Marathon Patent Group (MARA) .
As long as there are themes like this and a focus on individual stock picking, then the pullbacks should be viewed as just healthy corrective action rather than the start of a downtrend. When the market undergoes a more correlated selloff and there is little interest in trying to find trades then that is the time to worry.
I'm continuing the hunt for short term trades but would not be surprised to see some deeper correction in the indices as speculative action cools a little.