Yesterday, it appeared to be a combination of both. However, when Meredith Whitney, the analyst who became famous for her 2007 prediction that Citigroup faced huge losses, uttered her first buy rating (Goldman Sachs) in two years, the markets jumped and never looked back.
The rally moved the Dow to its highest level since July 1, however, volume was light, and the economy still does not show any signs of a rebound. Nevertheless, it was the biggest gain for the indexes since June 1.
One day does not make a trend, and we will wait and see if corporate earnings along with forward guidance can support new upward momentum.