Following some optimistic, but vague comments from White House economic advisor Larry Kudlow about the upcoming trade negotiations with China, the market found support. The S&P 500 is trading close to flat and breadth is now slightly positive. There isn't likely to be any news to immediately contradict Kudlow's optimism so that is helping to keep a bid under the market for now.
Another thing that is benefiting the market is bored traders. Traders can't risk being caught by surprise positive news so they have little choice but to buy long if they want to "play." It may not be very lively or upbeat but at least there is a little movement.
The indices are also benefiting from strength in Apple (AAPL) , which is hitting levels last seen in October 2017. The stock is just a short distance from all-time highs and is apparently the repository of many fund managers seeking safety. What is making Apple so safe isn't spectacular growth but the fact that it continues to buy back shares. The company is using all its free cash flow to purchase shares and is raising funds via debt offerings to cover what is needed.
Apple is a great example of how near-zero interest rates help to keep equities near their highs although there are clear signs of economic weakness. It is well-anticipated that overall earnings will be negative year over year for the third quarter but when you can borrow money for particularly nothing to buy back shares then it doesn't much matter.
The market is going to remain highly sensitive to any headlines on China trade so don't let the positive action lull you into complacency. There is the potential for some major moves later this week.