The bulls were able to hold the early lows and walk slowly back to the highs as a short squeeze kicked in. It is very slow and volume is extremely light, but the market has done well when conditions are downright boring.
If you look back over the last few years you will see that one of the most difficult trades is to fade or short low-volume oversold bounces like we are seeing right now. Normally you would expect these types of bounces to invite selling by bulls stung by the recent pullback, but for some reason, we have a tendency to keep walking higher just when you think the shorts will make a stand. I suspect computer programs seeking to create short squeezes, but the message has been not to fade aggressively.
I was complaining a few days ago about how slow the trading was and how it would be nice to have downside action to shake things up. We did get the downside but it hasn't done much to shake things up so far. This is very dull action and even though there are a few things to trade, this environment does not invite aggressiveness.
We'll see how the close is, but I suspect the bulls are going to stick around through the end of the day.