The good news for the bulls is that the market has some very strong momentum, there is substantial performance anxiety and quite a bit of pessimism. As we have seen in the past the market has a surprisingly strong inclination toward V-shaped moves, even when it is extended and a sell-the-news reaction seems likely.
Virtually everyone, even the hardcore bulls, would agree that we could use some consolidation at this point, but the market has been quite stingy in giving the dip buyers much of an opportunity. The big dilemma at this point is that entry points are tough. It has been a market of chasing the last few days and if you have cash to put to work you aren't seeing many easy entries.
The dip buyers should provide some pretty good support and I'm not looking for the market to suddenly fall apart. But without some consolidation it is going to extremely tough to put money to work. I've reduced positions quite a bit into the recent strength and I'll be watching for setups to develop.
I'm hopeful that with the central banks on the sidelines we will see the focus shift to stock picking. Keep in mind that the price action continues to be quite positive and that anticipating weakness has been a disaster. Let the market be your guide.