A low-volume, V-shaped bounce is exactly what we have seen once again. We cut through resistance and just kept running despite poor news flow and lots of confused bears. I suspect that end-of-the-quarter window dressing aided the action today, but it has been another remarkable show of resilience by the bulls just when it looked like we could run into some real problems.
Typically, the window-dressing pressure dries up the day before the end of the quarter and that may have been what caused a little late-day weakness. But what we have normally seen after this sort of run is a new supply of dip buyers who are sick and tired of being underinvested as the market runs away from them. They may not believe the bullish arguments, but being left behind is enough to cause them to add some long exposure anyway.