I was off yesterday, but much of the modest optimism I saw in my emails seemed predicated on the idea that a budget deal was imminent, based on President Barack Obama's recent "Republican Outreach" program.
Bulls believe this will be the fuel that keeps the rally going, believing that some kind of deal is coming which will fund the government for the rest of the year while keeping the sequester in place.
It does seem like the sequester is here to stay, at least for a few months, but I'm less optimistic that some kind of mini-Grand Bargain is forthcoming. I don't see any side putting forth big ideas.
Oh, we know the outlines of what a deal might look like: A mishmash of Social Security cost-of-living allowance change, modest Medicare savings, and a few spending cuts such as farm subsidies and defense, along with a few tax loophole closers.
(Read More: Cuts Give Obama Path to Create Leaner Military)