Conditions were ripe for a 'sell the news' reaction to the Trump-Kim summit meeting but when pressure didn't build the buyers decided to focus on technology stocks and drive the Nasdaq and Nasdaq 100 ETF (QQQ) to solid gains.
Biotechnology, oil and technology preformed well while financials and the senior indices did nothing. The DJIA and S&P 500 closed nearly flat but breadth was slightly positive and there were around 450 stocks hitting new 12-month highs.
It has a herky-jerky day, but the bears were incapable of any sustained selling once again. It would have been easy to develop a negative narrative given that the indices are somewhat extended but it just didn't happen.
The bears will have another chance at 'sell the news' tomorrow when the Federal Open Market Committee announces its interest rate decision and policy at 2 pm tomorrow. It is widely expected that a rate hike will be announced, but the key for investors will be the level of hawkishness in the policy statement.
Typically the bears have had little success on Fed decision days. Even when the news is well anticipated, the computer algorithms still seem to have a 'buy' bias. With growing signs of inflation as unemployment hits record lows it wouldn't be surprising to see hints at more aggressive rate hikes, but the market is not showing any signs of worry at this point.
Once again there was some good action in individual stocks but the pace of trading is slow. There may not be a lot of interest in aggressive buying there is far less interest in selling.
Have a good evening. I'll see you tomorrow.