Just when many of us were counting on a small correction, the markets turn and bounce strongly - surprise! SPX gained $5 to close at $1766 and RUT outperformed SPX with an eleven dollar gain to close at $1107. However, trading volume fell off to 1.9 billion shares of the S&P 500 stocks (the 50 dma = 2.1B). Trading on the NYSE dropped 17% and trading volume decreased 7% on NASDAQ. SPX opened strongly this morning and then traded down to its opening price by mid-morning. But the remainder of the day saw a slow but steady climb higher.

There weren't any significant economic reports to drive this market today. Many are looking forward to the Twitter IPO on Thursday and the jobs report Friday.

Perhaps the bullish undercurrent is just too strong to allow a correction, and we will trade sideways for a while and burn off the excesses. The test of that theory will be whether SPX can break out above the highs set last week around $1775. Today's gains on weak volume don't provide very strong motivation to buy into this market. Many of the gurus on CNBC are predicting a correction, but the market has a way of surprising traders.