Seeing profit taking in all areas of the market right now, says Bespoke's Paul Hickey

Market Overview - The market is experiencing poor breadth, with concerns about high valuations, particularly in tech and AI-related stocks [2][4] - Liquidity is decreasing in the market, contributing to profit-taking across various sectors, especially in technology [2][3] Valuation Metrics - The S&P 500 is trading at 23 times forward earnings estimates, above its 5-year average of 20 times, while the NASDAQ 100 is at 28 times compared to 19 times in 2022 [6] - An equal-weighted S&P 500 index is trading at a more than 25% discount to the standard S&P 500 index, indicating potential for rotation if market conditions change [7] Sector Performance - Consumer cyclicals are under scrutiny, with the potential for them to benefit from market rotation, but they need to demonstrate stronger performance [8] - Industrial sectors have shown flat performance over the past 10 to 11 months, indicating a lack of clear leadership in the market [9] Earnings Reports - Amgen reported a 12% growth in product sales, driven by a 14% increase in volume, although offset by a 4% decrease in net selling price [11] - The company raised its full-year revenue and EPS guidance, reflecting positive performance despite initial stock fluctuations [11] Small Cap Stocks - Small-cap stocks have not participated in the recent tech-driven market rally and are more exposed to temporary disruptions from business shutdowns [12][14] - Since October, larger market-cap stocks have outperformed smaller-cap stocks across most sectors, indicating a divergence in performance based on market capitalization [14]