Despite the fact that the market was lower yesterday investors enthusiasm for stocks did not wane. Put/call ratios show continued call buying, albeit slightly below the record breaking pace we have seen recently. Rydex traders actually increased their already extreme bullish positioning.
This morning we are looking at a gap up as enthusiastic investors bid up prices. This is not what sentiment looks like after a healthy correction. The market has traded in a fashion that makes corrections feel like an impossibility but I can assure you they are still possible. The momentum trading robots will swing the other way if the markets start heading lower, even if right now they are saying "Two down days in a row. DOES NOT COMPUTE"