Steady, Relentless Buying Continues as Bears in Disbelief

Things started a bit slow on Thursday with few signs of speculative action, but when the market refused to rollover, FOMO started to build and the buyers became more aggressive. At the end of the day, breadth was stellar with 7,600 stocks advancing and only 2,300 declining. Over 830 stocks hit new 12-month highs.

Buying accelerated in the final minutes of trading and pushed the S&P 500 up 0.8% and left it just a few points below the all-time high that was hit on February 19. The Nasdaq 100 QQQ is already at a new all-time high due to the power of the Magnificent Seven MAGS and Nvidia NVDA in particular.

As is typical, the bears have a long list of very logical arguments for why the market is wrong to be acting this way. They have been on the wrong side of this action for a very long time. Worries about tariffs, World War III, inflation and slowing jobs and growth haven't been made into realities. What has been particularly difficult for many of the bears is that they have stuck to this negative view in large part because of their antipathy toward Donald Trump. Trump's policies supposedly were a disaster, but so far, there are no signs that this is the case.

On Friday, we have some inflation data that will generate a response, but the big event will be the massive rebalancing of Russell indices and various other indices. Volume at the closing bell will be huge, and this is typically the highest volume day of the year for the Nasdaq. This is very difficult action to game, and it renders the action in the indices fairly meaningless.

For now, the bulls are in full control and any arguments about their failure to understand how bad things really are sound a bit ridiculous.

Have a good evening. I'll see you tomorrow.

At the time of publication, DePorre had no positions in any securities mentioned.