The indices are trading in a very narrow range as volume slowly erodes. We now have about 3100 gainers to 4100 decliners with the selling picking up as traders grow bored with the lifeless action. If the old adage about it being dangerous to short a dull market then the bulls should be optimistic because it doesn't get much duller than this.
I posted a poll on Twitter this morning asking readers if they thought that the market believes that the Fed "blew it" by not cutting rates as President Trump stated. There are 225 votes so far with 37% saying yes, the market agrees that the Fed "blew it", 44% say no the market does not agree, and 20% of responders saying it is unclear
What I find most interesting is that you would think 90% of people think it's ridiculous that Trump urges the Fed to be more dovish. That view is considered absurd by many, yet when it is considered through the lens of the market action it doesn't seem nearly as ridiculous.
This helps to explain why the market is so celebratory about a dovish Fed. Many market players believe that a dovish Fed can still make a big difference in the market. There is a likelihood that the market will continue to react favorably to negative economic news that suggests a more dovish Fed.
That reliance on the Fed will help to keep support under the market but right now it is just deadly dull while we wait for some sort of news event. This isn't bad action but I may persist for a while and that is going to cause some impatient folks to hit the eject button.