There’s nothing like some good news to tick this market off. Weekly unemployment claims post their sharpest retreat in a year, and stocks sell off. Add in a defiant European Central Bank that is unwilling to throw in the towel on the region’s ruinous austerity measures—even as France looks set to elect a hard-left socialist—and there are still ample reasons to be scared. And yet, as my Breakout co-host Jeff Macke says in the attached video, “The market is talking, and what it’s telling you is if you’re bearish, you better come up with a whole new litany of reasons why things can go wrong, because stocks want to go higher.”

The Consumer Discretionary Sector (NYSEARCA:XLY) is at an all-time high, and the strength of the Homebuilders (NYSEARCA:XHB) has been re-invigorated. Although this is impressive, I tend to think that a more nuanced shift is underway, rather than the stark “cash or long” thesis of my desk partner.

See the full “Breakout” segment below:

NYSE:XHB, NYSE:XLY