The bears were looking hopeful after a quick reversal of the opening strength, but a late bounce took the wind out of their sails. While it was a lackluster day the underlying support, positive breadth and the strength in the Nasdaq should offset any major concerns.
The headline writers will try to attribute the action to some of the economic new, but basically it was just technical trading. We were a bit extended and the choppy action today helped to consolidate gains. It continues to be a positive setup for a run at a breakout to a new 2016 high for the S&P 500.
What is most notable about the market action is how loud the bears are as they try to anticipate a top. They are convinced that a hawkish Fed is a negative catalyst, but it just isn't working. The problem is that there are still plenty of folks trying to extract some gains from the upside. We've seen this market levitate so often that it is far easier to have confidence that it will become more extended rather than roll over.
Despite the generally positive action, I'm finding that my long inventory is dwindling as I sell stocks that are extended and am unable to find replacements. Too often that means we just keep on running, but there are enough names such as Celator Pharmaceuticals (CPXX), Acacia Communications (ACIA), Weibo (WB), Minerva Neurosciences (NERV), Evolent Health (EVH) and BioTelemetry (BEAT) that are working to maintain a positive view of the market.
Have a good evening. I'll see you tomorrow.