Due to the way the DJIA weighs stocks, the higher the stock price the bigger the influence. Hence the 0.5% gain in that index is all the more impressive today, with IBM down about 9 points (which I believe is equivalent to about 63-65 Dow points).
We continue to act 'constructively', as the 50 day moving average area (up to S&P 1191) held like a peach this morning - low of the day 1191.48. Like clockwork.
As important, 'bad news' is now getting ignored - the PPI came in 'hot' but everyone knows the Fed doesn't care about any inflation readings - if anything it just means potential QE3 is pushed out a few meetings, but they won't be tightening for half a decade, so inflation reports are moot for a few years. Earnings reports last nite and this morning were not impressive but the market is in a happy place so it's a character change.
Some reports on the European ESFS situation is the leading plan is for that vehicle to accept the first 20, 30%ish of losses on debt purchases by private investors, hence 'levering' it to about a $1 trillion entity. Kicking the can always makes the market happy, so people seem to be sanguine about what Europe is doing.
Technically, we still want to see this S&P over 1240 level to be more intermediate term bullish.