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The Market Trend Remains Higher for Now

Stocks shrug off intraday weakness to maintain latest moves higher.
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An intraday dip in the S&P 500 gave the bears a brief glimmer of hope but the Russell 2000 ETF (IWM) and the Nasdaq 100 (QQQ) made up for some flat action in the senior indices. Breadth was even intraday but closed solidly with around 4150 gainers to 2580 decliners. It wasn't strong follow through but it reflected some good underlying support which bodes well for continuation of the uptrend.

Markets like this have a tendency to stay sticky to the upside. There is fear of missing out combined with an inclination to buy dips and that constantly squeezes the overly aggressive bears that continue to believe we are on the brink of some sort of disaster.

On Monday I discussed how this market refused to embrace a negative narrative. Not only was that the case today but there was hardly a mention of trade wars or bonds. The news was focused on the usual political complaints about President Trump, the exit of Howard Schultz from Starbucks (SBUX) and a few other non-market moving stories. Strength in oil was one notable issue that didn't receive much coverage.

There was a slight pause today but the uptrend continues and there isn't any negative news having an impact. Complacency may be a bit high but it isn't much of a contrary indicator at this point.

As the old saying goes 'the trend is your friend.'

Have a good evening. I'll see you tomorrow.

At the time of publication, Rev Shark had no positions in any stocks discussed.