Choppy Consolidation

After a lot of moving around reacting to the consolation of the North Korean Summit the market ended the day about where it started and still in consolidation.  With the long holiday weekend ahead expect very light volumes and choppy price action.  Currently, the futures suggest a slightly bullish open, but I highly doubt it will find enough energy to attack overhead resistance or move lower to test support.

There are times to trade than there are times its more productive just to do other things.  Today is likely going to be the latter.  I wish you all a wonderful 3-day weekend.

On the Calendar

The Friday Economic Calendar kicks off at 8:30 AM Eastern with the Durable Good Report which according to consensus will remain strong even though they expect it declined 1.2 percent.  Ex-transportation the number should see a small gain of 0.6 percent and core capital goods could be up 0.7 percent in April.  The Consumer Sentiment number out at 10:00 will remain strong according to consensus with a print of 99.0.  We have one Fed Speaker at 9:20 AM, and three speaking at 11:45 AM.  To close the calendar week, the Baker-Hughes Rig Count is out at 1:00 PM.

A light day on the Earning Calendar with only 15 companies reporting with FL being one of the most notable.

Action Plan

Dipping sharply after the cancellation of the North Korean Summit indexes managed to recover ending the trading day about where it had begun.   If today were a normal day, I would take that as a possible bullish signal but with a holiday weekend just around the corner, not so much.  Futures suggest a slightly bullish open, but I think we can expect volume to drop like a rock after the morning rush as traders head out for the long weekend.

With so much political uncertainty brewing in the trade negotiations I plan to go into the weekend light in my account and avoiding the urge to add any new risk.  The major indexes are in a consolidation range, and I think finding enough volume to change that today will be near to impossible.  Maybe the best course of action is to fire up that grill and get the weekend started early.

Trade Wisely,

Doug