My big worry about this market isn't that it is going to suddenly plunge but that it may go dead and not do much for a while. The very sedate reaction to the G-7 meeting and the Trump-Kim summit suggests that market players are not inclined to produce much volatility. Maybe the Fed and ECB decisions will shake things up but the market is acting like we may see a period similar to what occurred back in July and August 2016 when we set some records for flat action.
This market simply doesn't react to news events for long. Bad news is immediately bought and we end up with positive action but muted momentum. We have had a couple very tight range days lately and they seem to come in bunches when they occur.
As a trader I prefer more ups and downs. I find myself rooting for weakness quite often because it is the best way for new opportunities to develop. Straight up markets are good for trend following but there always comes a time when entry points are more difficult and it is harder to put cash to work.
If we do have an extended period of flat action, the best way to deal with it is to keep on hunting for individual stocks. You will go crazy trying to make money as a market timer when there isn't any real movement.
Flat markets can offer some great trading but they can be very frustrating if you spend too much time and energy trying to anticipate bigger moves in the indices.
I'm typically not a bottom fisher but one stock I'm watching right now is Casa Systems (CASA) . There was a 180 lock-up of shares that expires today and that may help to put in a low. Quite often a stock is pressured in anticipation of the lock-up expiration rather than afterwards. CASA had a good quarter but has been struggling since then primarily due to concern about the lockup.