The bulls remain in full force, in sentiment at least, with the attitude that the government will continue to print money via fed easing and provide stimulus by extending the bush tax cuts and unemployment benefits.
The aaii.com sentiment index has consistently shown bulls at about 50% lately. Last week’s thestreet.com bull/bear profile showed bulls beating bears 61-23.
While this generally reflects overbought conditions, it takes bulls to make a bull market, so who knows, it may continue for awhile.