If you watch psychologically important levels, then the fact that the S&P; 500 and Nasdaq remained above 1,000 and 2,000 respectively yesterday, is definitely a good thing.
Despite some bobbing and weaving throughout the session, last half-hour buying pushed the major indexes into plus territory, which means that the Dow and S&P; 500 have gained four trading sessions in a row.
I agree with the fact that the longer the indexes hover around these lofty levels, many money managers with large cash positions will be forced to put that money to work, which could keep the upward momentum going.
Four bits of good news kept the rally alive:
1. Caterpillar’s very bullish guidance
2. A better-than-expected report on pending home sales
3. A strong day for financials and commercial real estate stocks
4. United Airlines’ report of stronger-than-expected passenger traffic
Looming above the good news is Friday’s unemployment report, which has the power to move the market in either direction. Anything “less bad” than expected will very likely help the bullish cause.