Though the European debt crisis continues to dominate headlines and spook some traders, overall, the consensus is that the bull market must press on.

Markets continue to get whipsawed back and forth as traders take in positive economic numbers and dreadful news about the European Central Bank, the EFSF and other sovereign debt issues. It appears that positive economic indicators have won the battle for now as the market erased losses on Tuesday morning and shot up higher, led by technology stocks and other names.

The Dow continues to remain above 12,000 at 12,096 and the S&P 500 is at 1257, well above the key support level of 1251. Coincidentally, the Nasdaq Composite is also rising, shooting up 2686.

“It feels to me this market has had every reason to get annihilated,” Sean McLaughlin, an independent trader and editor at StockTwits, told Markets Media. “And there are plenty of vocal participants in the press and on StockTwits who are waiting or positioned for a collapse. However, a funny thing has happened along the road to hell: It’s been paved with a strong bid.”

The late day melt up on Tuesday could be attributed to multiple factors. Some believe it was the positive news coming out of Italy as the new Prime Minister announced plans to reform the government.

Those who are hellbent on the coming apocalypse or bear market should use caution. A face ripping rally is fast approaching.

“All the stock charts I’m looking at show a consolidating range of the wild moves we’ve seen recently and appear to be heading for a resolution in the form of a big move soon. And my hunch is the odds favor the upside,” said McLaughlin.