It seems rather fitting that we capped off this week with an upside spike in the last 30 minutes of trading. The action was looking a bit thin and lackadaisical, but someone decided to run one less buy program before the weekend.
It was a big win for the bulls this week, with the much-anticipated election returns, the QE2 announcement and October jobs report bringing in even more buyers. The bears were ready for a sell-the-news reaction but it was just a bit too obvious. The bears just added to the upside momentum as they were squeezed, and the dip-buyers, who never had a chance to do their thing, helped to propel us higher as well as they chased rather than be left behind.
Can we keep it going? The good news is out, earnings are over, and we don't have anything really big on the agenda in the near term. Seasonality is favoring the bulls now, but we are technically extended and really need some rest. Some sort of pullback would not be surprising or even unwelcome, but just don't expect the market to suddenly collapse. Even if we are near a top, it will take a while for it to develop.