Major averages rose yesterday on higher volume closing at the top of their respective trading ranges, a sign of strength. However, overall declining stocks led advancing stocks in a slight divergence.
The Fed minutes showed that two Fed officials pushed for rate hikes in July. They also saw lower near-term economic risks. This initially pushed markets lower, but perhaps markets realize this is the Fed putting on a brave face to appear as if they know what they're doing.
Though markets have not made much progress over the last few weeks as is also reflective of big cap tech leaders such as FB, GOOGL, and AMZN, this pause helps to digest the sharp post-Brexit gains. Meanwhile, some names have done very well despite the pause the markets have taken. Indeed, partial profits could have been taken in a number of "frothy" stocks including some Chinese names.
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