For the second day in a row, stocks saw some rotational action early in the day, but then gained strength and closed at the highs. It was a bit more mixed under the surface Tuesday, but there is no question that there is still a high level of liquidity looking for a place to go.
Breadth finished at around 4,000 gainers to 3,300 decliners and there were over 350 stocks hitting new 12-month highs. That is a low number of new highs in view that the S&P 500 and Nasdaq are at all-time highs, but it reflects the fact that there is a rotation out of leaders and into laggards.
After the close Salesforce.com (CRM) put up some strong numbers that are likely to cause some sympathy in the big cap technology sector. This market keeps finding good news on which to run. The bearish narrative never seems to matter much.
The strong close helps to boost sentiment and squeezes the bears. It would not be a big surprise to see another gap up open tomorrow with the CRM news to serve as a driver.