The problem with the market recently is that although the indices have been holding up and there is some good news, there just isn't strong follow through. Wednesday we had a strong report from Apple (AAPL) to keep the bounce in the FAANG names going and a benign Fed policy statement in which they acknowledge strong economic growth, but the indices were mixed and breadth decisively negative.
With Apple hitting new all-time highs and some other good movers on earnings, like Paycom Software (PAYC) , it would suggest some good pockets of momentum. There were a few good movers, but new 12-month lows of 160 exceeded new 12-month highs at around 140. That is NOT a market with strong momentum. In fact, that sort of internal action would suggest that market conditions are deteriorating.
One positive spin Wednesday was that the market had a limited reaction to more headlines about China trade talk difficulties The last time President Trump suggested increasing tariffs the market sold off, but this time it just shrugged.
Almost all the major quarterly earnings reports are filed, but there are plenty of secondary stocks still to report. Tesla (TSLA) is jumping around randomly after hours as the bulls and bears duke it out once again. TSLA is one of those battleground stocks with many true believers on both sides. I have no interest in trying to figure it out or trade it. There are easier opportunities elsewhere.
Its been a tough slog recently with the limited pockets of momentum and I don't see any signs that is about to change. We may need some downside before we have better upside but the market seems to prefer this mixed action that leaves both bulls and bears unsatisfied.
Have a good evening. I'll see you tomorrow.