Just when it seemed that the bulls might be taking a rest, they come roaring back. SPX gained $13 to close at $2117 and RUT closed at $1243, up $9. Volatility continues to contract with the VIX dropping about a third of a point to 13.0%. Trading volume remains anemic with 2.1 billion shares of the S&P 500 trading. Trading was up 2% on the NYSE and up less than one percent on NASDAQ.

Over 90% of the S&P 500 companies have reported fourth quarter earnings at this point and about 75% have beat the analysts' earnings estimates. Concern about the strong dollar hurting the earnings of the multinationals appears to have been overblown. The Greek debt problem is certainly not solved, but traders seem to have moved on.

The pattern appears to be: 1) the bulls push higher, 2) bears present a "sky is falling" scenario, 3) markets trade sideways while we worry, and then 4) the bulls push higher.

Will Friday's jobs report be the next focus of worry?