Just when it looked like the illustrious advance from the March lows might show it's weak underbelly, the institutional buyers rode to rescue once again at the last possible hour, literally.

I'm not really surprised by the failure of the ascending triangle to make a text book breakdown through the bottom trend line. That would have been to easy, and this advance has been to strong for an easy breakdown. So, could it go higher from here? Sure, and it probably will. Watch 875 as a line in the sand to the upside.

I'm really not doubting anything at this point as a possibility for an upside move. Have you ever heard the term "melt up"? It's pretty simple really. Just take a chart of the decline from last year and turn it upside down. I believe it's possible.

Forget the economic rationale for such a move because it doesn't exist. It'll simply be the return of greed driving the "herd" who isn't "long" enough to look good in relation to their benchmark, namely the S&P 500. Understand? They HAVE to buy stocks if they're underweight them and the market takes off. Can I get an "AMEN" from any portfolio managers out there?

What really makes this possible is the swiftness of last years decline. It was literally straight down from late September into early October. That created massive air pockets with no resistance to slow the market down once (and if) it rises into that area. There'll be nothing to stop the advance.

Don't get carried away though if it occurs. I think whatever advance develops, it'll be completely retraced later. Understand that in the short term the market is a "voting" machine but in the long term it's a "weighing" machine, and this economy, along with any growth and profits it'll be able to produce, doesn't weigh nearly as much as it used to. Keep in mind, it's filled with paper!