Market players were quick to forget Wednesday's poor action as worries surfaced that maybe the Fed would slow its dollar-printing press. There was better action today but it was mixed. The Nasdaq-100 led as big-cap momentum names came back, but small-caps remained sluggish and closed at their lows while recouping only a small amount of yesterday's losses.
It's surprising how quickly the market regains its complacency, but there was a little worry late in the day as oil spiked on rumors of a pipeline explosion in the Middle East. The market has done a superb job ignoring the repercussions of higher oil and gas prices so far, but it will affect consumer spending at some point if the pace of the advance does not slow very soon.
Oil is just another in a long list of worries that the market is ignoring. A less accommodative Fed is another worry that doesn't seem to matter either. One of these days we will sell off, and these things will be cited as the reasons. But the key is to wait for the selling to justify the excuse. Just because there may be a good argument for the market to pull back, doesn't mean that it will.
Have a good evening. I'll see you tomorrow.
