We saw a decent amount of put buying yesterday, which leads me to believe that some of the risk from Europe is being priced in. While I don't believe a default is being priced in to stocks, I believe it will now take more concrete evidence of an impending default to shake the market.
Even if the market gives up its gains today we will have a decent oversold reading at the end of the day today. Starting tomorrow we will be dropping negative numbers for 4 out of the next 5 days from the 10 day moving average of the NYSE Advance-Decline line. The put/call ratios are consistent with those seen at the beginning of a rally as well.
Somewhat tempering my enthusiasm is the fact that we have a very heavy week of stock issuance, we never really saw much panic and intermediate term sentiment still has room to become more bearish.