Feel the beat of the rhythm of the night. Forget about the worries on your mind. Dance until the morning light...the music's playin', it's a celebration...oooh, ooooh, oooh, uhhh--ooohh. - DeBarge, "Rhythm of the Night" (Motown)
The spirit of DeBarge's 1985 hit (often mistakenly attributed to Gloria Estefan) prevailed in financial markets on Columbus Day, as investors explored the Old World for news and found something to make them happy, forget about the worries on their minds and bid up the prices of risky assets.
The S&P 500 rallied 3.4% to 1194 and is now up 10.6% since bottoming at 1080 last Tuesday, October 4. Sure, the rise is powerful and quick, but it maybe too early to be declare the sharp summer slump a thing of the past. To borrow form DeBarge's contemporary, Lionel Richie, the S&P 500 is 'dancing on the ceiling' of a 140-point range that runs between 1080 and 1220. It has yet to break on through (to the other side).
The rally is working from a starting point of depressing sentiment with potentially positive catalysts that can come from corporate earnings season that starts with Alcoa on Tuesday afternoon.
|