Despite better-than-expected retail numbers and some decent earnings reports from banks, the very slow trading action continues.
Breadth and the major indices are almost dead even. The Russell 2000 ETF (IWM) is showing a little relative strength, but if you are looking for pockets of momentum or strong themes, you won't find much.
Sometimes flat markets can be very advantageous for trading as the best trading candidates tend to stick out and garner more attention. A good example today is Roku (ROKU) . The stock had a nice "anticipatory breakout" setup and traders jumped on it when it took out the recent highs. In a market offering little this sort of action stands out and becomes self-filling to some degree.
The big danger in a market like this is the tendency to try to read something into minor action. Traders always want to stay one step ahead of the crowd so they are prone to believe that trivial moves are more significant than they really are. There really isn't anything very notable about the current action other than it's very slow and there is little volatility. Where that leads we won't know until a later point.
I am finding very little of interest to do right now so that that is what I'm doing. I'm not worried about adding long exposure when there is this little sustained momentum. Hopefully, this action will serve as a foundation for greater movement soon but it is important not to be overly anticipatory.