The major indices are trading close to flat and breadth is running just slightly positive, but what is most notable about the action today is the complacency. There are pockets of strong action that can be seen by reviewing the list of over 500 stocks that are hitting new 12-month highs.
With the indices extended and hovering near all-time highs it is a perfect time for some rest in front of the three-day holiday weekend. The coronavirus even provides a good excuse for those that need one but there just doesn't seem to be any reason to worry that the market might suddenly reverse. After all, if a pandemic that will cause some economic slowing can't hurt this market, then what will?
While many market players are enjoying this relentlessly positive action, there are quite a few others that are finding it very challenging. There just aren't many great technical setups when the action has been this lopsided for this long. That definitely doesn't mean that the trend won't continue but it does inhibit the ability to be aggressive.
I'm making a few casual trades but until there are some strong emotions at work I don't see much of a trading edge. Complacency is often viewed as a contrary indicator but it doesn't seem to work that way lately. Complacency seems to create more fear of being left behind and that keeps the market running.