With the VXX trading around $20, negativity is hardly "off the charts." I would say that investors are rather cautiously optimistic. It's true, however, that a bull market should climb a wall of worry (if there's no worry, then watch out).
bear markets (like the one we are in) are known for powerful short squeezes like today. They suck you in. You just have to step back and ask yourself. ' what has changed in the macro environment today to jusutify the rally'
I cant see anything that has changed in Europe. We were technically oversold and a bounce was due.
The Euro crisis is only just warming up IMO. I am hoping for another 1% move higher in S&P this week and I may cover my remaining VXX short and add to my FAS & TNA shorts.
The only bull market you will see is the one artificially created by continued money/debt creation by the central banks and the IMF and World Bank. But there already is so much debt out there it is likely that more debt will not fix the problems. What appears to be happening is massive debt destruction and deflation which is being countered by massive gifts to the banks and massive coordinated global easing and new debt/new money creation. I think things for most people will become more like the mid-1930s in the U.S. before we get back to sustainable growth. They are certainly trying to squeeze the 99% to thje extent possible. But they can't take everything away ore they will lose control.