What was remarkable about the market action today wasn't just the big point gain but the fact that we had absolutely no dips at all into the final minutes of trading. Other than a little pullback at the close, I don't think the SPY dipped more than 20 cents more than once all day.
After the weak action yesterday and growing concerns that maybe we were due to roll over a bit, market players were very poorly positioned for a gap-and-go day. It becomes even more difficult when we don't have a single intraday pullback of any sort.
We actually had an uptick in volume to go along with about 4 to 1 positive breadth. All major sectors were up, with oil and gold leading on the back of a weak dollar. The leadership stocks like AAPL, PCLN and GOOG regained their luster as market players chased the big-cap, high-beta names.
With Japan announcing another round of quantitative easing last night, there was a lot of talk about how useless it will be for the Fed to enact QE 2. Maybe so, but this market is very aware of what happened to stocks last year when the Fed launched QE 1. We had a number of straight-up runs that crushed any doubters, not to mention the bulls.
Technically, the S&P 500 finally blasted through that 1150 level that has presented so much resistance lately. That now becomes our key area of support. As long as we stay above 1150, the bulls not only have the momentum, they have very little upside resistance all the way up to the April highs.