Last week's trading appeared to give the bears hope and the markets opened lower this morning. But that was the end of it. The bulls took over and drove the market higher with SPX finishing the day at $1979, up one dollar. RUT remains weaker than the blue chips, closing down $5 at $1140. The VIX popped up this morning as the market traded lower just after the open, but pulled back as the market recovered, ending the day just a tenth of a point lower at 12.6%.

Trading volume was lower on Friday's weak market, but volume picked up today with 1.9 billion shares of the S&P 500 stocks trading. This is right at the 50 dma. Trading volume was up 6% on the NYSE and up 4% on NASDAQ.

All of the technical indicators are on the side of the bulls. many analysts, including myself, have serious doubts about the economic underpinnings of this market, but the reality is that the bulls are dominating the market. Today's "buying the dip" was just one more example. Whether I think it makes sense is irrelevant. So I am trading the market from a bullish bias, but I am very cautious. A pull back or more serious correction remains very probable, and the longer this bull market runs, the more likely the occurrence of that pull back.