Midday Check: The Day After

The markets are pulling back today, after yesterday's huge rally. The big culprit today is the energy and commodity complex. Profit taking is underway in these sectors, and all of the stocks are down big.

Oil and gold are down -3.4% and -3.9%, respectively. This is causing big declines in the energy stocks, and even bigger declines in the agriculture and mining names. Take a look at the DBA commodity ETF to see what I am talking about.

It is piercing below its 50-day moving average on surging volume. These stocks have been so strong for so long that this unwind could last awhile. It remains to be seen where the proceeds will flow into. I am leaning toward the tech sector to be an eventual beneficiary.

It is normal to see a pullback after yesterday's rally, let's just hope it doesn't get out of hand. In terms of investor anxiety, the put/call ratios are high again today, showing no signs of complacency.