I'm not sure why the market rallied yesterday but the positives and negatives are clear.
Negative: Madoff fraud and the fact that one or more auto makers might fail.
Positive: Bush and Paulson make noises that they are not willing to let the auto makers go busto yet.
I was out for happy hour yesterday and more than one farther-right-than-me person opined that the reason the market rallied was relief over the Senate rejecting the auto bailout. While that may have been a good decision, that reasoning is a stretch.
The oversold bear market rally continues.