Those very indicators that diverged or lost steam on Tuesday were the catalysts for yesterday’s rally. Financials were strong behind the earnings of State Street Bank. The Financial Sector SPDR, XLF, finally moved aggressively off of the February low in a convincing move higher. Then there’s the Philly Semiconductor Index. Tuesday was pretty disappointing after the SIA reported 48% year-over-year growth, and the SOX ended the day flat. The Semis made up for it yesterday, jumping over 5%. One of the more favored signs of seeing a bottom is when bad news doesn’t stop a rally. Family Dollar lowered expectations for the next quarter, yet the S & P Retail Index gained a solid 3.2%. Even bond yields rose, as money flowed back into stocks and into risk. The Russell 2k gained a stunning 3.7%. The stuff that was working Tuesday, like the weaker Dollar and stronger Euro continued to widen the spread. That helped lift crude by another stunning 3.8%, which pushed Energy stocks higher as well. Even the VIX, which was moving lower even as the market moved down, continued to fall precipitously by 9.5%. Volume expanded and Breadth, on both the NYSE and the NASDAQ was up 6 to 1 and nearly 4 to 1 respectively. As the S & P rallied back above the 1040 level, that magical support point that, once broken would end the world, it did see short-covering. However, there was clearly broad based buying that made yesterday a convincing turn-around session. It will still take solid earnings to move the S& P above 1100.