This market seems to want to keep going up, despite a string of negative headlines.
Even with Libya, Japan, Europe and disappointing durables the Teflon Dow marched higher on Thursday coming within 200 points of a 2011 high.
And the action in the S&P was equally impressive.
Chart watchers point out that the S&P 500 broke above its 50-day moving average at 1,305. Some investors take that as a signal the market has gotten past the worst of its recent pullback.
Is the S&P action turning bears into bulls?
Instant Insights with the Fast Money traders
Guy Adami admits that he’s been bearish and in the short-term he's changing his outlook. Although he had expected the market to breakdown he also says, “you have to allow the tape to tell you what’s happening and the tape is saying the S&P wants to go back to 1325.”
It's worth noting that rather than climbing on fundamentals, Adami suggests that recent gains were triggered by short covering. “This last 25 points in the S&P caught a lot of people off guard and I’m one of them” he says. “And now we’re getting a lot of covering.”
Trader Steve Grasso cautions investors not to "get myopic on 1305," the 50-day moving average. "1308 is more important,” he says. “That’s the level I’d want the S&P to close above to feel bullish.