We have very slow action this morning as market players await the next headline. Either something on trade or interest rates is going to be the next catalyst to drive this market but it is too late to buy and too early to short. There is a good likelihood that a news headline will lead to some substantial swings and there isn't much to do but wait for that to occur.
Breadth is running slightly negative, the FAANG names are under pressure again, bonds are again moving back up, oil continues to weaken and there isn't any positive leadership right now. Despite the lackluster action, market players are still anticipating a positive headline on Mexican trade soon and that is keeping a bid under the action.
Keep in mind that the May jobs report will be issued Friday morning. If this report confirms the very weak ADP report that we saw yesterday then the chances of a rate cut will become a near certainty.
The markets has been quite buoyant on the dovish Fed but when the data starts to come in much weaker than expected, lower rates may not provide as much comfort. Rates are already lower than during past easing cycles and the Fed does not have much room in which to work. If there is not a quick rebound once rates are cut it is going to put Jerome Powell and his crew in a difficult position.
I am doing very little again. Charts need more time to develop and many of the smaller caps are drifting lower on a lack of bids. This is not an environment that favors active trading at the moment.