You have to look at volume, if it's high than it's more than just a few bargain hunters and short coverers propelling it up for a day. The other day the 2,000 point rally they had was on really high volume. I can't check todays but if that's the case here, it's good news. IT means the institutions are staying long.
But then again I'm a very simple investor now, I lost a lot of dough trying to trade individual stocks in the middle of the tech bubble (like trying to swim in a typhoon, you're going to end up under water no matter what you do). Since then I've been more inclined to hold few index funds and some bond funds and I set a target percentage of stocks vs bonds and I move money quarterly accordingly. So my technical acumen is very rusty.
With the miracle of compounding, and a growing economy, it’s amazing that some folks insist on turning wall street into vegas. When you look at long term charts of the US markets, it’s a no brainer to make money. But the fact is, nearly half of all people that invest wind up losing money. Lack of discipline, and speculation to blame. The media is also VERY good at messing up investors. In good markets, they PUMP the hell out of investments, and in bear markets they scare the hell out of investors to get them to sell. The media is criminal, fake, awful, and now that kind of media dominates even the food pages of the paper.