Mondays trading meeting here. Despite neutral Power Bars, near term market direction has more upside potential based on technicals. Market breadth is narrow and decidedly defensive, with Utilities, Real Estate, Healthcare and small caps showing the greatest potential for out-performance in the coming months. Technology appears to have rebounded from a fairly steep intermediate term sell off, but the PB differentials on Industrials and Basic Materials - sectors most likely to be impacted by the widening trade war - are suggesting that the overall market rally could be limited. The market seems to be gearing up for better than expected earnings, but as a trader I may be very interested in selling the news as we wade deeper into earnings season.
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