Arguments for a pullback in the indices continue to pile up, but the buyers seem more worried about missing out on further upside than they are worried about being caught in another correction.
It is likely that very fast moving computer buy programs tend to stick with the upside action because they know how quickly they can reverse their positions should the market weaken. They can't stick with the upside for as long as possible since they can move so quickly. That is why the shifts in the market can happen so quickly.
Right now market players simply are not buying into the negative narrative that the bears are trying to establish. Mediocre earnings news, the government shutdown, the uncertainly over China trade and the Brexit mess are having no impact on traders.
The main justification for this upbeat attitude seems to be our old friends at the Fed, which seems to now be solidly dovish and ready to ride to the risk if we do have another dip. We all know we shouldn't fight the Fed and apparently that view is back in play for now.
The indices are extended, overhead resistance is growing stronger and the news flow is problematic but all those things are being overcome with some strong buying momentum. We overshot to the downside and we are now overshooting to the upside but that is the nature of markets.
Have a good evening. I'll see you tomorrow.
