Very heavy volume yesterday 43% of the float is short as of jan 15th. Sometimes these rallies set the tone for an upward move. Shorts are punking out fast it appears. The ten year is dropping fast also adding confidence that lower borrowing cost will spur sales.
It is not a short covering rally. It is people going long into the lower yields. The uncertainty in the market re taper and emerging markets is going to make folks flee home builders too. Just watch. The whole overvalued stock market is now in trouble.