What a Week: Feeling Groovy

The stock market won the trifecta this week: The inflation worry passed, the price of oil fell, and the week rolled out a bevy of big M&A, private-equity and IPO deals.

The three major indices rallied in reaction and are now yielding double-digit returns for the year.

The Dow Jones Industrial Average gained 1.9% on the week, up 0.3% Friday, to 12,342.56 -- another all-time high. The S&P 500 finished the week up 1.47% to close at 1401.20, its first close above 1400 since November 2000. The Nasdaq Composite ended Friday down 0.13%, but gained 2.4% for the week to 2445.86. Year to date, the Dow is up 15%, the S&P 500 has gained 12.25%, and the Nasdaq is up 10.9%, joining the double-digit club this week.

But, like a stretched rubber band, the longer the rally goes, the more anticipation builds for a snapback.

"As every day becomes a new closing high, we have to rationalize the place we've gotten to," says Art Hogan, chief market analyst at Jefferies & Co. "You look at the next week and you ask, 'What will keep us here?' "

But with very little data out next week, and given the market's tendency to go up and stay up, the market and its participants may just have their gluttonous appetites to guide them.