Conditions were excellent for a "sell the news" reaction to the latest China trade news but the selling didn't start until about 90 minutes after the open and then it was a slow-and-steady drip rather than a rush for the exits. The S&P 500 closed at its low of the day, which makes this the biggest "gap and fade" day of 2019.
While an intraday reversal may excite some bears, it isn't anything technically significant at this point. The S&P 500 still closed in positive territory with a gain of 0.26% and, while it is technically extended, that doesn't mean that the current uptrend is under pressure.
The good news is that there continues to be some excellent trading in individual stocks. Nio, Inc. (NIO) , which I have been aggressively trading did very well and recent stocks of the week Pyxus International (PYX) and Intelsat S.A. (I) are looking good. There are many more. If you are focused on individual stocks rather than the indices this market still looks quite healthy.
Federal Reserve Chair Jerome Powell is scheduled to deliver the central bank's semi-annual Monetary Policy Report and provide testimony before the Senate Banking Committee Tuesday morning. He will also appear before the House Financial Services Committee on Wednesday. This will likely give the computer algorithms some ammunition for a few trades. Look for the bears to gripe about his now dovish stance.
Overall the indices are walking the high wire and there have been a few wobbles, but the trading opportunities have been very good and that is the main thing that matters at the moment.
Have a good evening. I'll see you tomorrow.