In last tow days while the news looked horrible, the tape never looked panicky. Buyers were chasing any weakness. Yesterday morning itself it looked very clear that there was bid in the market and many big participants in market had access to information which was not yet public. That ultimately resulted in a very wild, rumor driven session. Final score to bulls.
Irrespective of the external noise, if you look at Market Monitor indicators. While the primary indicators are bearish , the secondary indicators are bullish and in the next 1-2 week time frame the market has bullish bias.
In an ideal world we would have liked the market to panic more, the MM indicators to have reached extreme and then the market reverse. That would have been enormously positive for a healthy 3-4 month rally. But we have to deal with what we got.
Generally post Fed for a day or two there is lot of volatility and then clear trend emerges. As of now clearly the financial are the focus and bulk of action is concentrated in all kinds of banks and insurers. Those are the sectors which saw broad based buying yesterday.