Thus far the rally has been less spirited than what I anticipated. There is a reason they call it a "snapback" rally, but that reason is not apparent today. I believe there are two main reasons for the lethargic action. The first is that there are signs of liquidations happening in certain sectors and the second is investors seem to be fighting this rally.
Chinese stocks have completely imploded. At first it was the second and third tier names but SINA and BIDU have recently fallen out of bed as well. This has carried to other momentum names as well that are not even Chinese but have similar growth ownership. The financials have also been under severe pressure, although they do seem to be stabilizing. I believe these liquidations will make it hard for the rally to carry very far.
We are once again seeing put activity and there seems to be a general distrust for this market. I believe this is a positive for the market in the near term as these counter trend rallies generally tend to end once they are embraced.
All in all I believe that this rally likely has further to go but that it won't be up, up and away.