The bears hoped that maybe the "sell the tax reform news" trade was just delayed a day, but that did not turn out to be the case. The bulls held steady and a late buy program kept the indices slightly positive. Breadth also turned positive as the day progressed and ended up with about 3,700 gainers to 2,900 decliners. There were more than 475 stocks hitting new 12-month highs.
Small-caps continue to lead the market higher. The action yesterday in the group felt downright frothy, but it was not the contrarian signal that market timers wanted. There was a little early weakness, but those dip buyers go to work quickly.
The pattern of the market for much of the year has been to go flat after a big move, like the small-caps had yesterday. We keep seeing plenty of evidence of suppressed volatility, but it doesn't seem to have any real impact on sentiment. If anything, it makes the bulls impatient and more willing to provide support.
There continue to be many good arguments for why this market should correct, but it seems to work off the overbought conditions with limited volatility instead. Many stocks are technically extended, but the odds still favor buyers who are willing to chase.
Stay intently focused on the price action and don't make big market calls just to be doing something. The market will let us know when conditions change.
Have a good evening. I'll see you tomorrow.
Special $95 Subscriber Rate for Jim Cramer's Oct. 28 Investor Summit
Jim Cramer will host Marc Chaikin, JJ Kinahan, CNBC's Jon Najarian and other top experts on Oct. 28 in New York City to share successful strategies for active investors -- and for a limited time, Real Money subscribers qualify for a special $95 rate.
You can join Jim and his guests as they discuss how smart investors can make the most of options trading, futures contracts, fundamental and quantitative analysis and great ETFs to buy right now. Participants will also get a chance to meet Jim and other panelists and take photos.
When: Saturday, Oct. 28, 8 a.m.-3 p.m. ET
Where: The Harvard Club of New York, 35 W. 44th St., New York, N.Y.
Cost: $95 special for Real Money subscribers (non-subscriber price: $250)
Click here for the full conference agenda or to reserve your seat now. Use the discount code CRAMER to receive your $95 subscriber rate.
At the time of publication, Rev Shark had no positions in the stocks mentioned.