The market was over heated and in recent days there is some loss of momentum.
The sectors that were first to breakout out like biotech and REITS are taking a pause or pulling back. But new sectors are breaking out so usual rotation kind action is happening.
One of the key thing to watch is small caps losing momentum. as a momentum trader small caps offer you best opportunities. when they move they can quickly make 10 to 20% move in days. However in last few days they have been losing momentum. If this trend accelerate then it will be cause for worry.
However based on daily stocks in uptrend study on stocks using trend intensity, I see ton of orderly pullbacks and consolidation. many stocks have started to pause after first up leg. These kind of continuation patterns have high probability of resolving to upside. Besides that the Trend Intensity universe is not showing signs of breakdown as of now. That means likely next up leg for many of these stocks after a pause.