The S&P 500 has already reached levels this year that weren’t reached until December 2004 in the tech stock crash recovery. The volume levels are underwhelming, but on almost every other front the bulls are celebrating. It doesn’t hurt that business continue to report very good numbers. It is hard to get a good doom and gloom mood going with folks like Intel and IBM beating analyst’s numbers. Malaise in the financials could spread if Goldman gets taken down a few notches, but after a weekend to think about it investors evidently decided that it wasn’t enough to derail the whole recovery.
My tendency is to react too quickly to the market’s moves—so I’m trying to be patient. I wouldn’t be surprised to see this correction last a bit longer, the market seldom jumps back up immediately after a blow-off day like last Friday. The VXX continues to build popularity on down days—it traded over 22 million shares on Friday—which looks to be 7 million over their previous record.