We have some routine oversold bounce action this morning with some vague, but positive, comments from President Trump about trade being the main justification.
The big issue the market faces today is how willing buyers will be to load up on positions in front of a long weekend which could have some surprise news. There has been quite a bit of talk out of China about their willingness to fight back on trade and there is a good likelihood that could continue.
In addition to the China issue there has been more chatter lately about a slowing economy. That seems to be a growing concern and goes hand-in-hand with the trade issue. The market has relied on positive headlines from the Trump administration to battle the bears but it is becoming more difficult without real progress especially as economic worries build.
I don't see a lot of reason to trust there will be sustained upside action at this point. I'm always happy to change my mind but my time frames with new buys right now are either very short or very long and I'm not doing much long term positioning yet.
One new buy I've made this morning is cloud play, Smartsheet (SMAR) which is trying to move out of a six week long trading range.
The key for the market the rest of the day is to hold above the morning low and not fill the gap. As long as that occurs, it will attract some buyers that dislike the idea of missing out on any upside no matter how brief it might be.