Mike Santoli’s market notes: Stocks cool, bulls could face test, utter nuttiness in some names

Traders work on the floor of the New York Stock Exchange.
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This is the daily notebook of Mike Santoli, CNBC's senior markets commentator, with ideas about trends, stocks and market statistics.

  • Market continues to quietly, sluggishly cool off. Best case the past two weeks can be viewed as a needed consolidation of the mad sprint higher that started Oct. 30.
  • At the index level, moves are muted, growth/stay-home stocks catch a bid as cyclical/reopening names give back some gains. The effect is a bit of a tightening coil, an indecision pattern in the S&P 500. Still say we can drop another 2-3% and have it be a pretty bland and routine pullback, but not a trend-changer. Some look at the four straight upside gaps early in the month and think the market could test short-term bulls by "closing" them. This often happens but certainly not always.