If you read the news this morning you may not have expected the S&P 500 SPY ETF to close up 1.3% today. China threatened the US. The US threatened China. We had a big spill in the market yesterday because of Italy. Don't those days usually call for the Dow down 500 points or something crazy. Not today. We'll explain why.

Why The Market Was Up Today

We've been saying "this market wants to go higher."

Like today, we pointed out a similar setup last Thursday where the market was initially spooked about China and North Korea but crawled back all day.

That was a sign of bad news, good action. When you expect the market to do one thing and it does another, you have a clue to a stronger underlying trend.

Same thing two weeks ago. Bond yields spiked and the market did nada, nothing.

This market is telling you it wants to go higher. It's building underlying strength.

Same thing today. The US listed what goods it wants to Tariff. China answered back with their own tariff threats. And there could have just as easily been a follow through from yesterday's Italy worries.

But, nope the market bounced right back. That's bad news and not just good action, that's amazing action.

Bullish traders took note.

Conclusion

Bullish.