Stocks are meandering looking for fresh leadership and looking to Washington, D.C., which is abuzz as President Trump presses for tax reform.  Meeting with a group of representatives at 2:45, and dinner with Nancy Pelosi and Chuck Schumer, President Trump is sending Capitol Hill a message this will not be another Obamacare repeal fiasco.

It’s too early to know what a package looks like, or even if it gets done this year, but conventional wisdom is shifting the realization there will be significant changes.  Meanwhile, the economy continues to hum along with renewed vigor that the war on business is over.  The debate is how much help will this vigor need to shift into overdrive?

Energy is the outperformer after EIA showed crude oil build came in at 5.9 million barrels, which is less than API data and consensus of 10.1 million; consequently, this is sending West Texas Intermediate higher.  Crude back in the shadow of $50.00 a barrel has the XLE on the cusp of breaking a key resistance point. 

XLE

Let the market digest these gains for now and be ready for the next leg higher.