We have full-blown FOMO (Fear of Missing Out) as the indexes have been trending steadily higher after the gap-up open. Folks who want to put some idle cash to work have no choice but to chase. Breadth has not slowed at all and is running almost seven gainers for each loser.
The number of new 12-month highs is still very low at around 300, but that is a function of the sharpness of the pullback in the leading stocks. Those stocks are now regrouping, and the level of new highs will jump back if this momentum continues for another day or so.
The bears will be looking for a failed bounce, but I believe the greater likelihood there is a "V"-shaped move that will make it very challenging for those who don't want to chase. The pockets of momentum aren't as frothy as they were two weeks ago, but the stock-picking is very robust, and if there are pullbacks, it is likely they will be quickly bought.
The correction we saw last week was painful if you were holding stocks that have performed the best recently, but it was typical action and has set the stage for another leg higher. The lopsided nature of the action now demonstrates how much of a big appetite there is for equities.
I'm holding too much cash after last week and will be trying to put more to work. It may require paying up for some things, but I anticipate making some new buys in the final hour of trading on Monday.