The market just seems overflowing with shorts who pound down stocks with the help of HFT algos going along for the ride, and then cover in a panic when they see that the market holds it support levels. There has been a ton of volatility over the past 2 trading sessions, and we are pretty much back to where we started on Tuesday morning. In the process, you shook out some weak hands, squeezed some shorts, and established greater divergence between the strong markets (US) and the weak markets (oil, Europe, Japan, etc.).
Everything points to a grind higher with an eventual target of 1980. Don't know the path that it will take to get there, but almost seems like it has to because of the number of underinvested fund managers and stubborn bears. I am not a raging bull, but I know when to get out of the bull's way when they have room to run higher. Let the optimists have their time in the sun. It should last a few more weeks. There will be plenty of time to get short at much better levels. I am in no rush to short this market. In fact, I have been doing a little dip buying here and there, as I don't see us crashing again for quite a while.
Not the greatest market for bears here. Take a break till FOMC in mid March if you are one.
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