Wall Sreet roars back after biggest plunge in 6 yrs; 'volatility ahead'

Shaken out of many months of calm, Wall Street braced for a higher level of volatility in the days ahead, after a roughly 2 per cent rebound in US stocks on Tuesday followed the biggest one-day selloff in more than six years.
The question that vexed traders: were the wild swings of the past two days the start of a deeper move down or just clearing the way to the resumption of the aging bull market, which would turn nine on March 9.

"Today's market action is a classic of a market that has searched for a bottom," said Peter Cardillo, chief market economist at First Standard Financial In New York, who predicted a rebound back to record levels.

Bulls argue that strong US corporate earnings, including a boost from the Trump administration's tax cuts, will ultimately support market valuations. Bears, including short sellers that bet on the market decline, say that the market is over-stretched in the context of rising bond yields as central banks withdraw their easy money policies of recent years.