The Energizer Bunny Market

The market is up again this morning, continuing its stair-step pattern higher, to the extreme dismay of the bears. Anecdotally speaking, I can't count the number of talking heads I have seen on CNBC and elsewhere who have been calling for a pullback in this market.

It just goes to show you that the notion that the market often moves in the direction that frustrates the most poeple is often true. I also think that the fact that so many investors are all looking for that elusive pullback leads me to believe that many managers remain underinvested in this market, and will likely have to chase stocks higher if the market goes to new highs.

Last night the news of the big capital raise by BAC and the in-line earnings report from HPQ led to some selling after hours, and as I went to bed last night the futures were pointing to a lower open. But some positive earnings reports before the bell from the likes of TGT, BJ, and Deere (DE) seem to spark renewed buying, and lo and behold a higher open.

The SPX got as high as 924.60 so far this morning, while its recent high is 930, so we're not that far away. Moreover, the Nasdaq has recaptured its 200-day moving average, another positive technical sign. And the VIX is making another sharp move lower, down -4.3% so far to 27.50, and nearly getting back into what might be considered "normal" levels.

Asian markets were mixed overnight; Japan's economy shrank a record -4.0%, though the decline was less than expected; the dollar is weak today, helping boost oil, gold, and commodity prices; oil has topped the $61 level again, as we near Memorial Day weekend which kicks off the summer driving season; the 10-year yield is flat near 3.24%.

I'll be back with my trading comments--