Market bulls found support at the right time and pulled another rabbit out of their hat. It’s good to have friends in high places, as the Fed’s POMO money continues to flow, including another $6+ billion today for the purchase of Treasuries (which tends to find its way into equities). Last Wednesday, I suggested that the extreme weakness might have been a selling climax, and it turns out that is was – at least for the short term.

This market sees nothing but rainbows and butterflies ahead. No worries, no fears. Although backing and filling is a necessary aspect of a healthy bull market, history shows that it can go on for awhile without. Now that the Dow has touched 12,000 and the S&P 500 came within a whisker of 1300, perhaps the bulls will be ready for a much-needed respite.