Brokers Bottom, Market Rallies

The market is enjoying a significant bounce on the heels of the brokers bottoming. S&P is saying that the market is overreacting to its Bear Stearns (BSC) outlook change last week. It is also saying that BSC's liquidity remains "solid" and that the liquidity at the big brokers in general is sound.

Also, Wells Fargo (WFC) announced a big buyback this morning, which helped the financials gain support.

Despite the rally, the put/call ratios are still very elevated, with the CBOE put/call at 1.30 and the ISEE at a very depressed 75.

Oil is down roughly $4 from its high today, which should be a big positive for psychology.

long WFC