Feels like a short squeeze coming.

Whenever news it at its worst, and the market no longer sells, there’s good reason to think the next move will be a rally.

Moves off lows can be sharp as short sellers often buy in a hurry to cover themselves.

Tuesday’s strength from Semiconductors ($SOX) and Transportation ($TRAN) are strong votes for an upwards push.

But in this environment, any news of default could easily panic the system.