S&P Closes Just Short of a Record

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Feb. 24 (Bloomberg) –- Bloomberg’s Nikolaj Gammeltoft and Julie Hyman discuss the rally in the U.S. markets and what investors are expecting to happen in the future in “On The Markets” on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Today.

We were just talking because it was a large rally for the major averages and yet there didn't seem to be any macro fundamental news underlying it today.

When we did our reporting, no one had a fundamental reason for why we are suddenly back at market highs.

We were down behind january and on february 12, we are us talking about selling off and unrest in the ukraine will stop suddenly we are back where we were a month ago.

It is an amazing reversal of market sentiment and people are confused about it.

People are also questioning whether it's justified in terms of what is going on in the world.

Giving the sellouts we have had, what were we saying -- what were we seeing in the op and market?

I looked at two things -- i look at the s&p 500 futures where people can go long and short.

We saw hedge funds and speculators betting on a decline for the first time since 2012. that was a major sentiment shift as well, but if only short the s&p 500. we look at the options prices on the s&p 500, that has not come back to where we were.

Just before the selloff started in the emerging markets fears started creating havoc in the market, we have not come back to that level.

We are still at 14, some people are still buying call options and pitching their s&p 500 positions.

Given that we had this quiet unexpected record being reached today intraday, were people quick to go bearish when all of that was happening?

Do we see some bloodshed happening?

Part of what happened is that there were some short coverings.

People got wrongfooted by the quick rebound in the market, there's a real catalyst in emerging markets and suddenly it's not there and people are rushing to cover the decision and that's a perfect setup for a rally.

That exacerbates the rally also.

But that is the fundamental reasons people are short covering.

We will check back in.

This text has been automatically generated. It may not be 100% accurate.

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