Yesterday was a good day for the bulls and not just because of the outsized gains. There was heavy put buying and Rydex traders became more bearish showing that traders have not yet embraced this rally. Chances are that traders will fall back in love with the market before the move is over. The downside is that the stupefying moves continued as the market swings wildly from day to day.
While wild volatility is hardly encouraging I believe the bulls deserve the benefit of the doubt between now and expiration. A lot of puts have been bought in the past few weeks and they might have to expire worthless before the bears can make another run.