Hope is alive in the markets but are there many believers?

The market rise yesterday was significant for one reason, all three Indexes broke above their 20 day Moving averages. Even in the face of announced layoffs by a number of companies today and Friday's poor unemployment figures, the Bulls want to shrug off the bad news and are trying to change the negative psychology pervasive across the country. If there is enough money on the but side this can have a very positive effect. However, if it can't be sustained, the market can easily slip back and retest the lows.

Volume was decent but not unusually high for a Monday. If Volume increases with the prices rising it will give hope to all. I wish it true for everyone. I just can't buy the argument we have bottomed out without a retest of the lows. Some on CNBC this morning have only one explanation for the market rise, a Santa Claus rally. Several commentators have said they don't trust the rise as they know every day after 4:00pm there will be bad news from some company.