The indices traded down Tuesday night following news that Trump's former personal attorney Michael Cohen was pleading guilty to election fraud among other charges. The anti-Trump bears were gleeful as they predicted that impeachment was coming soon.
However, market players have heard this sort of story before. They yawned and commenced buying in the pre-market action Wednesday and hung around for the rest of the day. There was a little bit of a jig on the Fed minutes but the indices didn't collapse into the close this time.
The retail sector, which has been a leader lately, reversed to the downside intraday despite great reports from Target (TGT) and Lowe's (LOW) . Biotechnology was a standout Wednesday with a few of my favorite names such as Sarepta Therapeutics (SRPT) , Global Blood Therapeutics (GBT) and Zogenix (ZGNX) doing well.
Market breadth was solid with about 4,000 gains to 3,000 decliners but new 12-month highs faded a bit to around 300.
Given the news flow this was very solid action. If the market wanted an excuse to sell off it had it but there is a much greater fear of being left out of upside than of being caught in a selloff on political news.
The stage is being set for a strong reaction to Fed Chairman Jerome Powell's speech on Friday morning at Jackson Hole. Still, technically this market continues to look very healthy. Negative seasonality has not been an issue at all and the serial top callers keep supplyng more fuel for the upside.
It was a good day for many individual stocks and that is what it's all about.