Stocks are at a pivotal point that has some traders looking for a pull back but others afraid to be caught short.
Tuesday's market was quiet, meandering a little above, then a little below the key 1000 level on the S&P 500. The Dow closed 33 higher at 9320, and the S&P closed at 1005, up 3, its second day above 1000 in 10 months. Financials were the best performers, up 3.7 percent.
"What you really have is money that's been on the sidelines starting to gently come in, and more of a willingness to take on some risk," said Pete McCorry, who trades bank stocks with Keefe Bruyette.
As stocks finished slightly higher, bonds were off as the dollar firmed and oil weakened. Metals, like gold, silver and platinum moved higher.
"They're absolutely going to test any support you have in 1000, and most certainly 950" said McCorry. "You have not seen volume confirmation in this part of the rally...so you would think they have to give some back."
From Mad Money
Doug Prskalo, who trades S&P 500 options at the CBOE, said he's seeing a lot of short covering. "There's a roll of the dice coming up on Friday with the unemployment number and the cash for clunkers bailout," he said, adding that the new fear among investors is about being on the wrong side of a market bent on going higher.
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