The indices often mislead about the health of the market, but currently they are more confusing than ever. Although trading was extremely dull, the DJIA produced its eighth straight day of new all-time highs, the Russell 2000 ETF (IWM) was down for the sixth day out of the last seven and the S&P 500 barely budged on a closing basis for the 11th straight day. It doesn't get much more inconsistent than that.
That sort of chaotic action would be rather refreshing if it were accompanied by some volatility, but it is dead out there. There were some movers on earnings reports, but there were more blow-ups than breakouts. Tesla (TSLA) was one of the few that attracted some momentum buyers, but names like Sierra Wireless (SWIR) and Teva Pharmaceuticals (TEVA) dished out some pain.
The indices did try to bounce in the afternoon again but news that the special counsel in Washington is ramping up his Russia investigation kept the usual buyers sidelined. CNN is reporting that "investigators are probing Trump financial crimes," which could liven things up if it isn't just more hopeful reporting.
Tomorrow we have the July employment report. It is expected that about 180,000 new jobs were created. Market players will be watching, but it isn't likely to be a market mover unless there is a significant variance from expectations.
Overall, I am concerned about the market primarily because there isn't much working on the long side. The DJIA is a joke as an indicator, the S&P 500 is comatose and the small-caps are lagging. Maybe some news out of Washington will stir things up, but despite the hopes of many market players, that doesn't seem to occur very easily.
Have a good evening. I'll see you tomorrow.
