The bears had a shot but couldn't close the deal. The intraday reversal following early strength was classic but they needed a poor close to create a little worry and they couldn't do it. The late buyers jump in and had things well off the intraday lows at the bell.
The market ended up with a very mixed day. Breadth was about even with the Dow and S&P 500 lagging the gains in the Nasdaq. There were quite a few classic breakouts on my screens, including Veeva Systems (VEEV), Weibo (WB), Gigamon (GIMO) and 2U Inc. (TWOU).
The bears seem to be growing increasingly anxious as they are convinced that the negatives are aligning for the inevitable correction. The bearish arguments are almost too obvious but, as active market players know, there are plenty of reasons for this market to rise even when the economy is weak and corporate earnings slow. What drives this market most of the time are structural trading issues, not news flow.
Speaking of news flow, we have the June jobs news in the morning. It is unlikely to have any major impact as the Fed is clearly on hold following Brexit, but it is always a good excuse for movement. A poor report may actually not be good news this time, but we'll discuss that more fully in the morning.
Technically the indices are still in position to make a run at all-time highs but it is becoming difficult to keep ignoring the negatives. The bulls still have faith but they are showing a few subtle signs of weakness.
Have a good evening. I'll see you tomorrow.