A good description of the stock market action Thursday can be found in Sir Isaac Newton's first law of motion, which states that a body in motion tends to stay in motion. There was no major positive news developments, but the indexes continued their recent momentum and hit new all-time highs once again.
Breadth lagged a little, with about 4,450 gainers to 3,000 decliners, and there were a few bouts of selling intraday, but the buyers refused to rest and there was no rush to take profits, although overbought conditions continue to build.
There are a slew of technical reasons that support the contention that the market needs a rest, but all those arguments are outweighed by the simple fact that there is still plenty of buying power. A great example of the buying power that is out there is the biggest market cap stock in the entire market, which is Apple (AAPL) . Apple's gains accelerated, with the stock up an additional 2%. There is no compelling reason for the stock to have such strong momentum other than it is an easy place to put large amounts of capital if you are fearful about being left out of even more market upside.
Small caps -- the iShares Russell 2000 Index (IWM) -- lagged and there were a few pockets of weakness in biotechnology and a few other places, but it is a market with a strong trend and that trend is upward.
At some point, a reversal will come, but as I've said loudly and often, there is just no way to time such a turn with any degree of precision. The market could turn tomorrow or it could continue to run higher for weeks. There is no way to know. The best course of action is to stay with the trend as long as possible, but be quick to cut stocks once they falter.
Have a good evening. I'll see you tomorrow.