It was a very busy day for news reporting with a slew of stories with the potential to move the market:
-- Jerome Powell testifies before Congress
-- United States Trade Representative Robert Lighthizer makes comments on China trade
-- President Trump's former personal attorney Michael Cohen trashes him in congressional testimony
-- Pakistan shoots down an Indian aircraft
-- A large draw in crude inventories
-- Pending home sales were weak
-- Bonds drop and yield rises
-- The dollar rallies
But despite all the news the market shrugged. There was an early dip that got the bears excited but the loss was totally recovered and the indices closed around flat for the day. Breadth was slightly negative and some recently hot stocks took a rest. If you were looking for drama there was much more in the Michael Cohen hearing than this market.
This sort of action is why I constantly preach that we have to stay focused on price action. Just because there are some big headlines it doesn't mean the market is going to do what you think it might. It is easy to speculate about how news might impact the market but most of the time those predictions just don't work very well.
The action Wednesday ended up being more positive than negative. The bears had the edge and fumbled it away as they were unable to press their bets at the morning low.
Like many other market players, I'd actually like to see some weakness but that certainly isn't a good reason for a bearish posture. The market is holding up well and the price action continues to accommodate the bulls.
Have a good evening. I'll see you Thursday.