After poor action in Asian stocks overnight, the U.S. markets gapped down to start the week and never managed to find much buying interest. There wasn't any major headlines, but concerns about China-U.S. trade negotiations and the level of Fed dovishness kept buyers mainly on the sidelines.
Breadth was poor with about five stocks down for two that were up. Most notably the SPDR S&P 500 exchange-traded fund trust (SPY) had its lowest full day of volume since August of last year. That tells us that it was disinterest rather than fear or worry that was responsible for the weakness.
Apple (AAPL) weighed heavily on the indexes and biotechnology names were relatively weak as well. There wasn't much that stood out to the upside, but retail performed well and a few groups like shipping attracted some interest.
Bitcoin was strong, which is likely a function of bored traders trying to find some action. I've been holding a Bitcoin proxy in the form of Grayscale Bitcoin Trust (GBTC) , which continues to have a very productive chart pattern.
While the action Monday was lackluster, the technical condition of the indexes remains good. Market players seem to be a bit confused about the Fed and are waiting on the sidelines to see how second-quarter earnings look. The first reports next week will be from major banks and provide some insight into the state of the economy.
Without news flow about either China trade or the Fed, the slow, random action is likely to continue.
Have a good evening. I'll see you tomorrow.
Apple is a holding in Jim Cramer's Action Alerts PLUS member club.