The equity indices are trading in a very tight range following a gap-up open Tuesday that is relieving "oversold" conditions. Market players are trying to decipher comments that Fed Chair Jerome Powell is making in a speech, although there aren't many clues of an impending policy change.
Powell reiterated that the Fed is monitoring the impact of trade tensions and will act as appropriate to sustain expansion. That is nothing new and doesn't provide much insight into potential rate cuts.
One interesting comment he made is that, "Financial markets have been nervous lately over an escalating trade war that has spread from China and now could include Mexico. At the same, government bond yields are behaving in a way that in the past has been a reliable recession indicator."
That would seem to indicate a greater dovish bias and the market seems to be slowly reacting to it in a positive way. The indices are hitting the highs of the day as I write.
I'm looking for some new long inventory but still see little that I want to add. There are some bottom fish plays I'm looking at such as Amarin Corp. (AMRN) and Aimmune Therapeutics (AIMT) but I'm moving incrementally
The FAANG names are developing a little better bounce after a slow start and breadth is running about 4,950 gainers to 1,850 losers. As long as the market stays green the more interest there will be in adding exposure.