The indices finished in positive territory for the eighth day out of the last 10 but intraday volatility picked up. There were a couple "sell the news" reactions to news about China trade negotiations and the minutes of the last meeting of the Fed but both times dip buyers stepped up and the market quickly recovered.
Near the end of the day news hit of another contentious meeting between President Trump and Congressional leaders and that caused another little round of selling. The market has been unusually sanguine about this battle over the government shutdown but it may start to matter more as it quite clear that both sides are dug in and not shifting.
The indices are wildly overbought at this point and running into areas of resistance which means that market players are likely looking for a news excuse to justify some selling. As is so often the case in the age of algorithms strength begets more strength especially when human traders start to question it. Eventually there is a catalyst for a turn but it is impossible to time it with any precision.
It has been a great bounce lately but I was feeling frustrated today as so many stocks have already made big moves and not to reset before they can go higher. I realize that I'm trying to use logic in an environment that is often illogical but there are few good alternatives to that approach.
There isn't likely to be any major news on China trade again for a couple weeks and it is quite clear now that the Fed has backed off from even a hint of hawkishness so there aren't any big news drivers left other than resolution of the "wall" issue and the government shutdown. It doesn't look that that is going to happen soon. While will likely cause some increased market volatility.
Have a good evening. I'll see you tomorrow.