It was yet another very impressive performance for the bulls. We had plenty of good reasons to sell off today, but the dip-buyers jumped in and refused to relent. Not only did we come all the way back from an ugly open, we kept on going and went out at the highs. At the end of the day breadth was almost 2-to-1 positive, and retailers and oils looked particularly strong.
What was particularly impressive was that we had this much strength despite struggles from AAPL, which has been the primary leader, and some very poor consumer sentiment data. There were no obvious positive other than continued speculation about when the Fed might roll out another round of qualitative easing.
The market looked a bit tired Monday after the very euphoric move on Friday. That lack of vigor looked like it was going to continue today, but the sellers just can't find any traction, and it looked like they ended up being squeezed once again.
At this point, "QE II" and the end of the quarter seem to be all that the bulls need to keep these indices aloft, but you have to wonder how much longer we can go without some consolidation kicking in.