We have mixed action this morning as the market struggles with a painfully obvious 'sell the news' setup but still isn't in the mood to dump stocks. Market players could easily find a reason to sell if they wanted to but they are still feeling quite positive.
It isn't just market players that are feeling optimistic. All three confident polls-NFIB, Conference Board Household Consumer Confidence and Large business CEO Survey -- are near or hitting record highs. Business confidence doesn't necessarily correlate with stock market optimism but there isn't much worry out there.
One negative this morning is that inflation is now running at 2.8% which is the highest level since 2012. The market doesn't seem to care but that issue will likely gain a little traction as we head into the FOMC interest rate decision tomorrow afternoon.
For a while now I've been writing that this market refused to embrace the negative narrative the bears keep trying to sell and that remains the case today.
I'm seeing better action in biotechnology names today but I am still finding it hard to find many entry points. While many stocks are trending, many of them are extended or have slowing momentum. A little sharper selling would help to correct that situation.