Although the Nasdaq had a decent gain, the bears aren't having much difficulty finding fault with today's action. Volume was pitiful, the S&P 500 and DJIA did nothing, banks, retail and oil were weak, and many key stocks did nothing.
However, what was positive was that the buyers were out there and were selectively buying a number of stocks, such as Apple (AAPL), LinkedIn (LNKD), Mellanox Technologies (MLNX), Cerner (CERN), SXC Health Solutions (SXCI) and so on. There actually was some normal stock-picking behavior, and we weren't too obsessed with the headlines for a change.
The biggest is that we are a bit extended on light volume as we head into resistance. The market correctly anticipated the Greek vote outcome last week, but the sell-the-news reaction was so obvious, it didn't really kick in. When the early reversal didn't gain momentum, the dip-buyers and stock-pickers stepped up and drove us.
Some market players attributed the strength to hopes that the Fed will be rolling out some form of QE3 later this week. While there is definitely hope that that will occur, I'm not sure that is what was motivating he buyers today. If we don't have something dovish from the Fed when it makes its interest rate announcement later, it could turn ugly very quickly.
I'm giving the bulls a bit more room here, but the technical setup is not all that great. We are going to quickly revert to headlines as the driver when the Fed makes its announcement and we get more news flows from Europe, but at least we have a small respite in which stock-picking actually working for a change.
Have a good evening. I'll see you tomorrow.