Floor Talk - The major indices are showing some sizable gains at the moment in a move that has been driven more so than anything else by a sense that it was due for a concerted rebound effort.
Several factors have fed the rebound mentality:
Defense efforts after the S&P 500 closed yesterday below its 200-day moving average for the first time since November 2012
Some resilience in European stock markets despite another batch of disappointing economic data; and
The material drop in both short-term and long-term interest rates implying a burgeoning belief that the Fed isn't going to raise the fed funds rate anytime soon
A buy-the-dip mentality today has been fortified by the following:
The outperformance of the Dow Jones Transportation Average (+3.3%), the Philadelphia Semiconductor Index (+3.6%), and the Russell 2000 (+2.2%)
These have been among the hardest-hit areas during the pullback
Influential bond fund/money manager Jeffrey Gundlach suggesting 2.20% is the low yield for the 10-yr in its latest move and that he expects a bounce in stocks
Strong gains in high(er)-beta names like Tesla (TSLA 231.82, +7.23), LinkedIn (LNKD 199.10, +5.97), Biogen-Idec (BIIB 306.03, +4.29), GoPro (GPRO 78.25, +1.58) and Google (GOOG 545.08, +11.87); and
A 12% drop in the CBOE Volatility Index (21.65, -2.99)
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