One thing that's driven the bears crazy about this market for quite a while is how vigorously it bounces back just when it starts to show a little weakness. Yesterday, we had the breakdown in precious metals and some troubling action in small-caps.
Today, any worries or concerns about this market looked foolish. That good old-fashioned momentum was back again, with plenty of stocks acting well. What was particularly positive was the strength in key names such as PCLN, GOOG, CRM, AAPL, and even RIMM. The leadership stocks were leading once again, and that bolstered sentiment for just about everything. Even the GLD managed to close well off its lows despite the dollar's strong finish.
There is a strong tendency toward some aggressive profit-taking in early January as those folks who deferred taking gains for tax reasons are finally in a position to act.