Rallies which start with a major shakeouts moves like this one after the February dip, tend to shoot up without corrections. Now after 2 months of rally, this might be a correction. While the action looked scary the numbers show much subdued selling. The 4% down numbers remained below 300.
The market again found trouble breaking beyond 450 levels on number of stocks up 100% or more. For a year, since July 2006, the market rallies have had a ceiling of 400 to 450.Which largely indicate narrower set of stocks making major moves. The numbers in good long duration rallies reach high of 1000 plus and on 200 plus as high as 400.
Money seems to be rotating in to some new groups and energy related stocks, metals and mining, funeral services, waste management, insurance, etc are having lot of young rallies. Those stocks might take on leadership.