The Bulls Won't Rest

 | Jan 24, 2012 | 4:50 PM EST
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The bears keep waiting for the underlying strength in this market to falter, but the dip-buyers aren't backing down. We gapped down to start the day but worked steadily higher and closed at the highs. The indices didn't have much to show for it, but it is impressive that the bears are incapable of building on any weakness. 

The reversal in oils was probably the biggest driver of the intraday bounce, but it was mild action without any major leaders or laggards. We are still technically extended and in need of a rest, but the bulls aren't willing to rest.

Apple (AAPL) numbers are out and it looks like blowout -- very strong numbers across the board and guiding upward for the second quarter. The stock is going to open up huge and the chase will be on.

AAPL is a major factor in the indices, so look for a gap up open on this news in the morning. We are going to be even more technically extended, but as we all know, trying to fight an uptrending market because it is overbought is extremely dangerous.

The strength of this AAPL report is going to catch many folks by surprise. We are going to have some chasing in the morning. It makes for a very challenging trading environment when we go parabolic, but you have to keep plugging away and looking for opportunities. They will be there, but they are tougher to find in a one-way market.

Have a good evening. I'll see you tomorrow.

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