Right now the market is in grind up mode, where we're seeing follow through in the all time high breakout with healthy action along the way. It has been a great swing trading environment these past two weeks since earnings season and this all time high breakout began.
While we've had a few weeks of peace concerning the US and China Trade War, headlines later in the week suggest it could be a problem again. We will have to watch whether or not this "Phase 1 Deal" is completed and signed and whether or not the Tariffs get rolled back.
The small caps range in the IWM have been the key to the market the entire year. Every time we're at the bottom end of the range, the market goes on a run until it gets to the top end of the range, and vice versa. Right now, we're at the top end of the range but earnings season has been very strong thus far and the geo-political environment is seemingly improving, so is that the change necessary for us to break higher out of the range and continue the market strength? Or will we see weakness this week and continue the range?
The action has been very healthy, so if nothing dramatic is to change then there is no reason this uptrend should not persist.
A big "if" though.
Click the Pic for Detailed Look
I don't believe TRI can get any tighter than the current consolidation its trading within. This one looks like it's going to explode out of this little base below $68 here. Can get a decent chunk of size on tight risk in this one.