The market looked quite sleepy most of the day, but the buyers woke up in the final hour of trading and delivered another solid close. The SPDR Trust is now up 11 of the last 12 days after starting the month in a very precarious technical position.
Volume was quite light today, but breadth was solid, and a rebound in the dollar didn't hurt oil and commodity-related stocks much at all. The weakest action came in retail after slightly disappointing earnings reports from TGT and HD.
Overall, we continue to have extremely positive action. It is obvious that there are a lot of underinvested bulls with bids under this market, and they are not letting things dip much at all. We are a bit technically extended, but we seem to be dealing with that with just a little slower action and some churning. One theme that we have seen often since March are these straight-up moves in the market without any meaningful basing or pullbacks. The bears just keep on getting squeezed, and the dip-buyers become even more aggressive.
If there are a lot of pessimists in the media who are trying to convince us that things are bad, they sure aren't doing a very good job of convincing anyone. This market is acting like it doesn't have a worry in the world....