Dow Claws Way to Record

Helping lift the Dow was JPMorgan, who beat estimates by a wide margin and set plans for a $10 billion stock buyback. Fellow Dow member United Technologies topped analysts' earnings and revenue expectations for the latest quarter and reaffirmed its forecast for the fiscal year.

JPMorgan added $1.89, or 3.8%, to $52.07. United Technologies tacked on 74 cents, or 1.1%, to finish at $66.92.

While volume was strong, breadth still remained an issue for bulls. About 2.97 billion shares changed hands on the New York Stock Exchange, with decliners beating advancers by a 9-to-7 margin. Volume on the Nasdaq reached 2.08 billion shares, with losers outpacing winners 3 to 2.

"That tells me we're setting ourselves up for a fall," said Cardillo. "We had a fairly substantial correction and then made that back over a short amount of time. The odds are piling up towards a vivacious pullback."

Robert Pavlik, chief investment officer with Oaktree Asset Management, said that despite the market's rally, traders need to be cautious for the near term.

"The recent market strength can be attributed to traders focusing too much on first-quarter earnings reports," he said. "The market will have to face the reality that we're in a softening economy, with stubborn inflation, weaker manufacturing, a weaker housing market, slowing business spending, a weak U.S. dollar and rising commodity prices."