The EU approved the use of the 440 billion Euro EFSF for pretty much anything, including open market security purchases and recapitalizing banks. I am not a sovereign debt expert but I can say with some confidence that 440 billion Euros should last more than a few weeks. TARP was similar in size and was never fully utilized.
This is not to say that other problems cannot creep up. There has been a slowdown in the economy, with the jobs picture deteriorating further. However, there have been some positive developments as well. Earnings have held up and there has been a flurry of cash M&A.
From a trading perspective this rally is only 3 days old and we are still oversold. We are heading into the turn of the month, which has positive seasonality. In the uber-short term we are stretched as we have rallied over 40 S&P 500 points in 3 days, but there is little reason to get too bearish here.