For most of May, it was prudent to take a defensive posture, as the market struggled with trade wars and signs that the economy was slowing. Traders that focus on trends and use tight stops have raised high levels of cash, as the indices broke support levels. Typically, that sort of positioning works out well as it allows for the deployment of cash, as the market finds support and then gradually turns higher.
This time that cautious approach didn't work nearly as well when the market reversed suddenly and flew straight up. The S&P 500 is up about 5.5% in five days, and there has been a gap-up open on each of those five days.
A trader that raised cash levels as the market broke down in May is very likely struggling as under-invested in the last few days. The chart readers are not going to find many charts that are set up. A broken chart that suddenly goes straight up five days in a row just doesn't make for a very optimal entry. If you are a disciplined trader, you don't chase a chart that looks like the S&P 500 looks right now. That doesn't mean it won't keep running, but it simply is not a pattern to buy when looking for lower-risk entry points.
I bring this up because many people who struggle with this action aren't bears. They are bullish, but they don't just buy without regard to what a chart might look like. Being bullish doesn't mean you have to be buying wildly. Wild buying was probably a good approach, but traders that have been doing this for a long time are much more likely to move incrementally.
The bears are obviously getting run over by this market right now, and if they haven't already moved out of the way, they probably won't. It is the under-invested bulls that have more difficult decisions. Do you chase the strength or wait for charts to develop better entry points? Getting left out of a strong rally pushes many people to be less disciplined -- but that actually has worked in this sort of rampage.
There are plenty of bulls out there with plenty of cash, which is what's keeping this market running for now.