After the straight-up run we've had recently, many market players have been anticipating at least a minor pullback. It looked like they might have been right when we started the day, but the dip-buyers jumped in and we ended up closing in positive territory near the highs.
The action felt like it was driven by computerized trading, which took advantage of many market players looking for a pause in the action. When we bounced back from this morning's dip, the machines kept pushing and that helped create a short squeeze. Extremely light volume indicates the absence of buying by major institutions.
Typically, an uptrending market doesn't need a major pullback to set up new opportunities. A couple of days of profit-taking will be sufficient to reset a few things, but we just haven't seen that with this market. We become more extended as the dips are snapped up by hungry, underinvested bulls.
There is an old saying that extended markets can become even more extended. That has certainly been the case. It will end one of these days, but even the fortune-tellers don't have a clue when that might be.