The great runaway market of 2013 is pausing here, at a minimum, with pressure in the high yielding areas of the market such as utilities, mortgage REITs, and now staples, particularly pronounced. Energy stocks are by and large holding up quite well, including several of the ideas we have looked at in this blog over the past week or two.
That said, as you can see below on the updated Google daily chart, dip-buyers should be more cautious here than they previously were in the rally. Google clearly has been a market leader, and you will notice what happened yesterday–A large, exuberant opening gap higher which faded and is now following-through lower today. Contrast that to the action we had become accustomed to so many times this year, with brief pullbacks abruptly concluded with a race to new rally highs.
Google is not a broken chart by any stretch of the imagination. But this type of change in action does drive home the point that what had been a green monster of a market is almost assuredly slowing down, even if it is a pause that refreshes.
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