The bulls are gaining some traction as early lows have held and there isn't any major news on the horizon other than earnings reports. Breadth is solid at 2-1 but if you are in biotechnology and optical equipment you are probably lagging. I have quite a few biotech positions and that is causing some underperformance.
The S&P 500 is now at the very top of its trading range and bumping into resistance at the 2690 level. The higher high is causing some concern among underinvested bulls and the die-hard bears that maybe this trading range will resolve itself to the upside.
Ultimately it is likely to be earnings that determine if this market can gain some momentum from here. Interesting Netflix (NFLX) which reports tonight is lagging despite quite a few optimistic forecasts from analysts. The stock has bounced well over the past two weeks but it looks like there is some nervousness that expectations are too high. We'll find out after the close tonight.
The market has had a tendency toward weak closes lately but right now it looks like there is some fear of missing out. The recently political issues seem to be on a backburner and bonds are a bit soft so there isn't any thing much holding back buyers with idle capital.
As a stock picker I try to focus on those stocks that are performing better than the indices but today I have too many in the wrong sectors. One sector that is of interest is MLP's. Energy Transfer Partners (ETP) , Hess Midstream (HESM) and Boardwalk Pipeline (BWP) are all doing well.
My Stock of the Week, PagSedurl Digital (PAGS) , is lagging but is holding support nicely.
