The North Korean summit abruptly ends with no deal and with the public Cohen political drama now behind closed doors the US Futures are suggesting only a modestly lower open.  However, with more than 280 companies reporting and a busy economic calendar a lot could still change as we move toward this mornings bell.

Even though the bulls have given up a little ground the last couple days they still are in control of the uptrend and fought back yesterday cutting the initial losses in half by the close.  The bears on the other hand continue to defend key resistance levels putting market between a rock and hard place and we will have to watch price closely for clues.  Perhaps we slip into a healthy consolidation resting after such an extraordinary market run.  If that’s the case, there will be some good trading for stock pickers as companies with price momentum can continue to elevate with relatively low volatility.  That of course will change dramatically if the bears began to gain the upper hand.  Stay focused and flexible.

On the Calendar

We have a big day on the Earnings Calendar with more than 280 companies stepping up to report.  Among the notable earnings today are, DDD, ABB, ALRM, AMC, AMCX, BUD, ADSK, CARS, CROX, ECA, GPS, EP, JCP, JD, KDP, LTC, MAIN, MAR, JWM, NRG, PRTY, SEAS, SPLK, TC, VMW and WDAY.

Action Plan

After some initial selling the market became very choppy and lethargic as the Cohen political drama which may be better described as a soap opera played out at the US Capital.  As near as I could tell skimming through the highlights the only thing accomplished was political grandstanding.  The markets are reacting lower this morning as due to the US/North Korean summit ends abruptly with no deal.  We also have India and Pakistan exchanging air strikes as tensions between the two countries escalate.

Technically, the indexes continue to battle index resistance levels and though the bulls gave up a little ground in the last couple trading days they continue to fight hard to hold the current up trend.  Asian markets closed lower and European are also currently lower across the board this morning.  US Futures are pointing to a modestly lower open but with a big day of earnings and economic reports anything is possible.

Trade Wisely,

Doug