Even with a good amount of selling in the last hour of trading the indices managed to stay in positive territory and breadth was quite robust with about 4,900 gainers to 2,300 decliners. The bulls had control of the action most of the day but the tendency toward strong closes has shifted recently and selling pressure accelerated in the last hour of the day.
There are plenty of good reasons for this market to rest or pull back, but as I keep writing the potential for a deal on China trade is keeping the bears at bay. We just never know when we might see another headline about progress. While many market players scoff at the upbeat comments by the Trump administration, it is just too dangerous to try to short in front of the news.
While the indices stayed in the green there was little momentum and even the buy program activity was quite sedate. There isn't anything wrong with the technical action, but it is becoming much more difficult to find entry points.
There is so much focus on a potential China trade deal that it is going to create a major market move when some solid news finally is released. The potential for a "sell the news" reaction will be very high and we will have to be ready to move fast. However, the likelihood is that the negotiations will drag out and there will be constant hints about a positive resolution.
I'm staying focused on individual stock picks and trying to make sure I keep accounts near highs. I'm not going to waste my time trying to time a move in the indices when the only thing that matters is the next headline on China trade.
Have a good evening. I'll see you tomorrow.