The indices continue to work higher as skepticism about the sustainability of the bounce grows. The fact that there are many market players looking for a pause or pullback tends to create squeeze conditions in the short term, but I'm still looking for a 'sell the news' reaction to occur as we hear about the trade negotiations with China.
There was a press release on the trade negotiations which stated that there was a discussion of fairness and reciprocity and that the main focus was on China purchases of U.S. products and cutting the trade deficit.
While that sounds positive, there is no substance and there is no time line. There is nothing really new here and it is the sort of announcement that may trigger the 'sell the news' pressure I've been looking for.
I have an index short in the form of (SDS) for a trade and will build it further if there are new intraday lows this afternoon. This market needs a pullback and this looks to be a good setup for one. The danger is that the programs may keep squeezing us higher as too many try to grab a trade on the short side.