Logically, it makes sense that the market should go down in the same manner that it goes up. Momentum should operate in both directions, but that simply has not been the case with this market. The bears are unable to generate the sort of downside pressure that the bulls have been able to routinely produce.
Part of that may be due to the underlying belief that the central bankers may step in at any time to "save" us if things get ugly. Another part of the support is that the computer programs seem to operate with a bullish bias. It is likely easier for them to manipulate stocks higher than lower, due to issues like the uptick rule.
Whatever the reasons might be, it is clear that the bears just don't have the ability to produce the same sort of momentum that the bulls do. As I write, the indices have already recovered from the opening dip and breadth is improving nicely. A bounce in oil is helping the bullish cause, but mainly it is just routine buying of dips.
There is no real fear or worry. No one is very concerned that maybe this is the start of the major correction that the bears have been predicting for years. The central banks are still quite dovish despite some more idiotic comments from various Fed members. The price action doesn't look all that bad, so why not catch some dips?
I don't have too much going despite the positive tone. Yirendai (YRD), a recent Stock of the Week, continues to look promising and I still like the way Neogenomics (NEO), my current Stock of the Week, is developing.