The leading parts of the market, dating back several quarters, are largely under heavy selling pressure again this morning.
Because of this, I am lightening up on my longs inside 12631, as breakout plays are largely suspect amid the ongoing carnage in the biotechnology sector, for example. Small caps are also a huge concern.
On the biotech daily ETF, updated below, note the potential now for a massive head and shoulders top spanning all of 2014, heretofore (light blue lines).
Any way you slice it, biotechs had become too extended longer-term, as we have been arguing for a while now.
I am seeking to finally pounce on some shorts I have been stalking for a while, such as Starbucks, if the weakness persists broadly.
Despite the S&P hitting a new all-time high once again this morning, it is as an unhealthy series of all-time highs as you will likely ever see, given the action in the leaders.