The bears' best hope for some market downside is a negative reaction to positive news. On Wednesday they had an opportunity on the Fed interest-rate cut but could only manage pressure for 30 minutes or so before the buyers jumped back in.
What the bears need is a "sell the news" reaction that causes some worries that the market is running out of positive catalysts.
While the bears complained again about the futility of Fed rate cuts the market is not showing any concern. The market has always been happy to celebrate a dovish Fed and even when it is well anticipated it still brings in buyers.
The action Thursday morning is slow but the longer the indices stay in positive territory the more likely buyers are going to inch back in and put capital to work. It is a combination of "fear of missing out" and "climbing a wall of worry" with a little "short squeeze" added the longer it lasts.
I'm hopeful that with the Fed behind us and some of the other macro matters temporarily on hold that we will see more interest in stock-picking. I'm not seeing much yet but will be making some minor buys as the day continues.
The big buyback news from Microsoft (MSFT) is hitting at a very good time as it illustrates that there is still plenty of capital out there to push stocks higher even while bears are fretting about EPS growth.
This market could use more buying energy but conditions are good for it to drift higher from here.