It was a sloppy day of action for the market topped off by end-of-the-month allocators. There were reports that pension and other big funds had $25 billion in merchandise to move and that seems to have been reflected in the poor finish and volume surge in that last 30 minutes of trading.
Breadth was about 2,700 gainers to 4,450 decliners but it was poor action in many recent high-flying small-cap names that stood out. I had my worst trading day in weeks as there were some pullbacks in some of big winners.
Although there was selling pressure Thursday it was contained. The bears still couldn't get any real momentum going. The big selling pressure in the last hour was more about allocations than market direction calls and isn't very meaningful from a big picture standpoint.
There isn't much news flow on the agenda and the indices don't have a lot of great support, so it won't be a surprise to see the bears press a bit. I still like the price action in many small-caps and there are plenty of names I'm looking to buy on pullbacks to support areas.
The market isn't asking me, but I'd like to see some downside and a trading range develop. We are likely to have some more positive spikes on China trade news soon and, of course, we have a very market-friendly Fed now so I don't expect to see a major correction at this time.
Far too many bears have held onto the belief that this market is going to see another deep dip. The better bet is for a shallow dip that sets up another thrust to the upside. However, as always, we will react to the price action as it develops rather than chase it.
There are some good earnings report after the close, including Zscaler, Inc. (ZS) .
Have a good evening. I'll see you Friday.