The market action Thursday was a good illustration of how it is the price action that drives the news, rather than the other way around. The market was ripe for a pullback after a good run and therefore the focus shifted to China trade issues, impeachment, and economic reports. All of that news helped to justify some selling.
The action was uglier than it looked, with breadth running two to one negative and small caps lagging. Strength in Apple (AAPL) and Facebook (FB) helped to offset poor action in hundreds, if not thousands, of other stocks.
Strength in bonds, weakness in the dollar and strong action in precious metals was one of the primary themes as market players digested Wednesday's interest rate decision. Although the Fed hinted that it is on hold as far as more rate cuts, bonds didn't act like they were persuaded by Fed Chair Jerome Powell and his posse about their hawkish intentions.
We have more earnings reports to digest, but the most important issue right now is that the indexes are in good shape technically and can easily handle some consolidation and profit-taking. The weak action is positive in that stirs up some increased pessimism. If this market is going to continue to run higher, it needs to climb a wall of worry and concern.
Don't be seduced by the arguments that a market collapse is imminent. Market conditions are still good and downside action is just a normal part of the process.
Have a good evening. I will see you Friday.