The market is back to the old highs. The correction that started in the middle of September for the S&P 500 and ended in the middle of October fell almost 10% from intraday high to low, is now back to where it started. The correction actually started much before September as the breadth of the market had really started to decline all the way back to nearly the start of the year with the small cap stocks under performing. The advanced/decline or breadth has now mended itself. Was this a prelude to something worse that is coming or did the markets overreact to Ebola, a European recession, a sharply higher dollar (a strong dollar is negative of S&P 500 profits), Russia, weak economic trends in Japan and China, and collapsing commodity prices? We are wondering if the rally was simply short covering and not sustainable.

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PVG Market in a Minute 2014-11-3