It was a mixed day of action, but from a technical standpoint, that is a good thing. After a sharp three-day drop and a sizable two-day bounce, some mixed action is exactly what is needed to help set up a foundation for the next move.
As usual there were some headlines about China trade to jerk things around, but it was all very vague. President Donald Trump commented that something might happen on Dec. 15 with tariffs. If the tariff increases that are scheduled are postponed, there is likely to be a positive market reaction and if they aren't, then no one will expect a deal before the end of the year.
The continuous focus on China is tiresome, but the good news is that the individual charts have been developing well and the positive seasonality into the end of the year should help to produce some decent trading.
In this market, the best approach right now is to stay highly reactive. The Dec. 15 date is significant, and will likely be the catalyst for some trending action. Given how the trade negotiations have progressed, it would not be a surprise if there is no deal, but the cost of being wrong is way too high to risk much.
The overall technical picture remains positive, but the headline risk is the challenge. I'll be focusing on stock picking, while we wait for more clarity in the indexes.
Have a good evening. I'll see you Friday.