Janet Yellen testified before the Senate Banking Committee today, and appeared to be reluctant to commit to raising interest rates too soon. Markets took that as good news and traded higher. But is it good news? It suggests the FOMC chair still doesn't feel confident about the unemployment picture and has concerns about a deflationary spiral similar to what Japan has suffered through the past several years. Most Fed watchers are predicting the first interest rate hikes in September.

SPX traded up $6 to $2115, but RUT was less enthusiastic, closing at $1234, only up $2. Volatility continued its contraction with the VIX falling almost a full point to 13.7%. SPX and RUT both set new all-time highs. The NASDAQ composite also traded higher, but remains about eighty points below its all-time high.

The Case Schiller housing price index published its December numbers today, +4.5%, up from November's +4.3%. The Conference Board's consumer sentiment survey came in at 96.4 for February, down from the exuberant 103.8. Are gas prices that core to consumer expectations? Maybe.

The bulls remain firmly in charge, although the charts seem to suggest some slowing of the charge higher. In any case, being bearish is very contrarian at this point.