Although there wasn't any definitive good news to serve as a catalyst, the bulls chugged away all day and managed to close the S&P 500 solidly above key resistance at 1104, which is the 50-day simple moving average. While there weren't any obvious positive headlines to spark the buying, there weren't any new negatives, either -- and that was all that was needed to keep the buyers coming and the bounce going.
With the straight up 50-point bounce in the S&P 500 following the breakdown on the Japan crisis, you have to wonder if our old pal, the V-shaped bounce, is back. Shorts and underinvested bulls have to be nervous about that, especially with the potential for end of the quarter window-dressing in the next few days.
The bulls are going to have their work cut out for them to keep this bounce going, but action on days like today create plenty of dip buyers who won't want to miss buying on the next bout of weakness. There are some very good reasons to look for the market to roll back over, but the market doesn't much care what is logical most of the time.