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Bulls Find Some Momentum

Why off the lows? We were down almost 130 points right after the open on the disappointing Chicago PMI-what's moving stocks up?

1) this is the last day of the best quarter in 11 years! And we are just off the highs for the year, so momentum remains on the side of the bulls.

2) dollar weakness helps stocks: the surest pair trade of the third quarter was go long stocks/short the dollar. Once again, stocks hit their lows for the day as the dollar hit its highs and stocks moved to highs for the day as the dollar hit its low. Get it?

3) Fed's Kohn: lots of slack in economy. Midday, Fed Vice Chairman Donald Kohn made it clear he thought there was slack in the economy, which traders take to mean that the Fed will keep rates low for some time.

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