Positive news about the progress on China trade is squeezing the market higher Friday. That said, the resolution of the border security issue and the declaration of a national emergency by President Trump may give the bears some "sell the news relief."
The action Friday is similar to what we saw this past Tuesday when the market moved sharply higher on hopes of a China deal. Many market players were out of position for the strength and that caused chasing and short covering. The bear's argument just won't work while there is the potential of a positive outcome on China trade.
Breadth is running very strong Friday with around 5,400 gainers to 1,700 losers, but what is most notable is the strength in banks and financials while the FAANG names lag. Every FAANG name is in negative territory, while the SPDR Select Financial ETF (XLF) is trading up nearly 2%.
It just doesn't pay to fight this market strength right now. It may not seem justified to some, but that isn't good reason to oppose the price action. It is better to be part of the mindless herd of buyers than to join the erudite intellectuals that will tell you why the market is wrong to do what it is doing.