The indices saw a rather abrupt intraday reversal Wednesday as the S&P 500 hit day highs around 2 p.m. ET and then sold off and closed under the morning lows.
Quite often these sorts of intraday shifts are a signal of some difficulties ahead, but breadth remained positive with around 4,800 gainers to 3,200 decliners, and small-caps and speculative names enjoyed relative strength. The action felt like it was mostly program-driven and focused mainly on big-cap names, but it did shift the tone of the market, which was ebullient again until midday.
I'd be more concerned about the index action if I had seen it reflected in the stocks I'm trading, but they held up quite well, and there was nothing more than some of the usual grumbling from nervous longs.
We are heading toward a three-day weekend, and we have negative seasonality for the next six weeks or so, which will likely push some folks to be a bit more aggressive with profit-taking. There were still over 600 new 12-month highs Wednesday, and my list of 10% movers was healthy, so I'm not feeling very worried at this point.
We'll see how the speculative action looks Thursday. Have a good evening.