"It was a dash for trash as the new year has come into play," said Todd Sohn, technical analyst at Strategas Research.
Stocks continued to rally Tuesday morning in the ninth session since the Christmas Eve shakeout. Amazon was u[ 1 percent, adding to its already 21 percent gain in the post-Christmas period. The stock's gains in fact have pushed its market capitalization sharply higher to nearly $800 billion, and on Monday, it surpassed Microsoft as the largest public company.
Investors are watching the action to see if new market leadership will emerge and whether the market is showing signs of having found a bottom. However, they say it will take time to tell, and there's still a lot of doubt as to whether the move higher is a sign of recovery, or simply a bear market rally.