The indices finished solidly higher, breadth was close to 2-to-1 positive, and the dollar weakened, which boosted oil and commodities. Overall, it was a fine day for the bulls, but it lacked energy and looked like little more than an oversold bounce after the weak action we suffered last week.
This is the point where the market has consistently caused difficultly for the bears over the last couple years. It looks like we have the potential for a failed bounce, but then the bulls never back down, and before you know it, we have another V-shaped move back up to new highs.
There are a number of headwinds for the bulls at this point, with earnings season winding down, seasonality turning negative and the end of QE2 in sight, but we have had no shortage of negatives for most of the time that the market has rallied.