The S&P500 traded in an unusually tight range all day, but it did manage a couple of points to the upside by the close. Under the surface, the action was much stronger than it looked, with a number of technology stocks heating up the Nasdaq. Volume was light, but breadth solid, with energy and semiconductors leading to the upside.
A number of stocks, like FFIV and RVBD, haven't done much for a couple weeks, but they sprang to life today. AMZN and BIDU acted well on their earnings reports, despite being in good position for a sell-the-news reaction. Market players were going back to some recent winners that looked like they were in trouble, and that made for some pockets of upbeat action.
The bears just can't seem to make a dent in this market. They are fighting some good earnings and confidence that the Fed is going to keep on running the printing press. The dollar did little today, and that is why the market stayed flat. We are still very focused on the dollar, and many market players didn't want to make any big moves in front of the G-20 meeting this weekend, which may have implications for the currency market next week.
So, the uptrend remains in place, and this market continues to ignore its critics. Who cares about unemployment, a double dip in real estate, the mortgage mess and a slow economy when you have some pretty good earnings reports and the Fed on your side? At some point, the negatives will matter, but the trend is telling us that it is still too early to be bearish.