This is a market waiting for a catalyst.
The battle lines are clear. The bears are focused on a slowing economy and the bulls are focused on a dovish Fed. The China-U.S. trade issue adds some potential drama but for now the only issue that really matters is whether the market believes the Fed can offset growing worries about a slowing economy.
Fed Chair Jerome Powell appears Wednesday and Thursday before Congress, which may provide a little additional insight into what the Fed is going to do, although a July rate cut of a quarter point is nearly a certainty. What will matter to this market in the near term is the earnings reports that start to roll in next week. If there are warnings due to trade issues it will increase the likelihood of a dovish Fed but will that be enough to offset lower guidance We'll have to wait to see.
Currently, market players look quite bored and the action is slow and dull. There is some bounce off the early lows but breadth is around two to one negative and there are limited pockets of momentum. Strength in Amazon (AMZN) and Netflix (NFLX) are helping. Apple (AAPL) is bouncing back and the Nasdaq 100 (QQQ) is showing relative strength.
I'm looking for some new trades and don't see too much. While I started a position in CareDx (CDNA) , there just isn't much movement out there right now. That will help some charts to develop but there isn't any reason to expect follow through.
Earnings season will liven things up, so stay patient.