Many market players don't recognize this fact because they are blinded by the fact that stocks are acting very well, but we are experiencing highly unusual market action right now. What is most remarkable about it is that neither news flow or extended technical conditions are having any impact.
Theoretically, the market is supposed to function as a discounting mechanism. The market prices in future profits and losses, discounts them with the appropriate interest rate and the end result is 'fair' value. The process depends on a variety of assumptions that are highly subjective and can change quickly but the overall process is logic.
The market often goes through long periods when this discounting mechanism doesn't work well and that gave rise to the market adage 'the market can remain irrational far longer than you can remain solvent'.
We are seeing that adage at work right now. It isn't just the fact that the indices are extended but that the price action itself is so lopsided. There is virtually no sustained downside volatility. Even on a day like today with the poor news from Apple (AAPL) , there is very strong underlying buying interest. There is no real fear that the market is going to suddenly recognize that maybe the coronavirus is going to do a little economic damage.
If you can't navigate the market based on fundamentals or chart patterns then how do you approach it? The only alternative is to focus on the price action and to react only when it changes. Many market participants have a hard time doing this as they believe strongly that stocks will eventually start to revert to the more normal discounting mechanism.
I don't recall ever seeing as many market bulls hoping that the market sells off to some degree. These folks don't think that the market is ready to crash but they find it increasingly difficult to navigate action that has such an unnatural feel to it. There are no signs of regular human emotions in the market and that is because the great majority of the volume is from computers and passive investment vehicles.
This is a highly unusual market environment right now but because it is positive action it doesn't cause the same sort of concern that a poor acting market would create. The important thing is to keep in mind that this not normal but it may last far longer than you think is reasonable.