It wouldn't have taken much to put a negative spin on the FOMC news today. After all, the policymaking board cut its GDP projection, admitted there were some slight increases in inflationary pressures and stated that QE2 is coming to an end in June. None of that is particularly market-friendly, but the bears were unable to do anything with it, so the bulls took control and did their thing once again. We went out strong and had a good ramp in breadth as well.
Many seem to be grumbling again about the illogic of this market action, with crude oil and precious metals ramping, the dollar going to zero and some struggles in big-cap names like AAPL, but the negatives are being ignored for now, and that's all that matters. It is easy to make a negative big-picture argument, but until the price action reflects some pessimism, it is a waste of time.
Technically we are right back where we were in mid-February. We have a straight-up move on light volume and are overbought, but this market has consistently crushed anyone foolish enough to try to call a top when we have this sort of setup. Perhaps it is the fact that it isn't very loved action that leads to such consistent and persistent upside.