It has turned into another dull of action, despite a stronger positive bias than we saw the last two days. Breadth is running 4-3 positive, and the indexes are in the green, but we have no signs that market players fear they're going to miss out if they don't jump in right now.
The primary dynamic at work is the potential for some positive trade news during the G-20 meeting this weekend in Japan. President Donald Trump will be meeting with a number of world leaders including China's Xi Jinping and Russia's Vladimir Putin, so that offers potential for market-moving news.
The biggest positive going for the market right now is it's in good shape, technically. It broke out of a trading range on Fed dovishness on last week, and is still holding above the gap created that day. Support exists lower at the 50-day moving average, which is around 2880.
The bears may have their usual litany of negative arguments about the market, but the price action is not confirming their arguments at this point. The run-of-the-mill pullback so far is actually a positive setup for a reaction, if there is any good news on trade this weekend.
The easy thing to do in this sort of market is to formulate a negative narrative and then to look for evidence to support the argument. The smart thing to do is to watch the price action to see if either a negative or positive narrative is taking hold, and then react accordingly.
It is dull out there Wednesday, but that isn't a good reason to start making grand predictions.