The indices gapped up nicely this morning following news that the Hong Kong crisis is cooling off but there is little interest in chasing the strength so far.
The most notable characteristic of this market right now is disinterest. There have been a large number of gaps in both directions within the recent trading range and that seems to be producing more confusion than anything else. Emotions are mixed and there aren't any signs of the fear of missing out or of the fear of being caught in a breakdown. Market players are biding their time waiting for a clear trend to emerge.
The action today is pretty much the inverse of what happened yesterday. Breadth is 5 to 1 positive and there are 200 new 12-month highs to 30 new 12-month lows. Semiconductors are leading with Micron (MU) being very active. Cloud play Coupa Software (COUP) is attracting breakout buyers but pockets of momentum are very limited.
The toughest markets to trade are those that are lacking emotion. Emotions are what create sustained trends and momentum and there is very little of that. The big moves are mostly occurring overnight and that is exhausting for traders that are looking for an edge.
I'd like to be doing some buying but the setups just aren't there. So far the opening gap up in the indices is holding but the S&P 500 is close to unchanged from the open. The movement in the major indices is deceiving. This is a poor market for traders.