US Mid-Session Update The S&P opened lower near yesterday's ES...

US Mid-Session Update

The S&P opened lower near yesterday's ES balance area of 2584 and worked its way back above the 200 day moving average. It now sits about 2612. The rebound was gradual in its initial stages as NYSE breadth went from -14:1 to its present -1.34:1. The market got a boost when the new White House economic advisor sought to the control the damage caused by the overnight futures dip to 2559.50 by implying that the tariffs on China might not go into effect. The new advisor - a long term financial tv pundit and sentiment gambler who is now in his element - was pressed on the issue by a reporter about the chances of tariffs being taken off the table. He replied that the chances were "not zero". Of course this is all in the name of NYC style real estate negotiations being applied on global stage. There is little doubt as to whether the market will try to exploit the present condition as it has the broader idea of running the country in the image of a mafia-style family business.

Some hearty bulls appear glad to go long here as that exploitation and the yearning to participate in a short term rebound is strong. A numbing effect is taking place again in the nervous systems of the body politic and market participants. But aside from intraday plays that get closed eod, many traders will likely remain cautious; as the larger picture - the increasing political dysfunction and consequences - has not changed.



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