Mike Santoli's market notes: Tape getting stretched, airlines scream higher, yields on the move

  • Market quietly and benignly (so far) digesting its big move, hovering just below the multi-month highs. The S&P 500 hustled up to the 3130 level the chart readers have been targeting for weeks yesterday and stopped short. This morning it made another run and made it just about to 3129. Not clear if this is just self-fulfilling reality of a decent place for the buyers to get bashful or the market defining the upper end of a new range, but watching.
  • Traders seeing signs that yesterday's aggressive grab for risk could show this rally is culminating in the short term - but also the kind of broad momentum that typically sets up further gains in the months ahead. The tape is getting stretched and running a bit hot: A six-year low in option put/call ratio yesterday, some overbought conditions cropping up.