Gurus Clash Over Last Week's Drubbing

In sum, rallies have become increasingly selective and focused on big-caps, he says; that process should continue as the market moves toward that presumptive top.

"If the market is getting more selective, you ought to make your portfolio more selective," Desmond advises. "Look for things that aren't participating [in rallies], get rid of it, and hold the cash. Continue to take that approach on further rallies, but don't sell everything. You can't jump to the sidelines the first time you see a divergence."

Whether that's a glass-half-full or half-empty scenario depends a lot on your timeframe, risk tolerance and market bias.

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