Market zigzags raise Wall Street's pulse

NEW YORK — Wall Street gurus said trading action would be choppier in 2014. Boy, were they right.

From the first day of trading in January until Feb. 3, the Dow Jones industrial average looked as if it was going into cardiac arrest, with its vital signs showing a loss of 7.3%.

But the Dow has done its best imitation of Harry Houdini in the past six sessions, escaping harm, rising in five days and trimming its year-to-date loss in half to 3.5%. Thus, the dialogue has gone from investors jawboning about an imminent correction to chatter about whether the market scare is past, at least for now.

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Helping the market's cause Tuesday was new Federal Reserve Chair Janet Yellen, who wowed both Wall Street and Congressional leaders with market-friendly Fed-speak.

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Yellen delivered the words Wall Street wanted to hear, mainly that the Fed under her leadership would be very similar to ex-chief Ben Bernanke's regime. In other words, the Fed would remain supportive of the economy and markets for as long as is needed.

Still, Wall Street isn't totally convinced the turbulence is over. Some analysts warn that the market's bounce has come too quickly, following what looked like a market in full retreat.

Other skeptics note that bull market leaders, such as small-cap stocks, have been lagging Dow blue chips in the rally. What's needed now, chart watchers say, is for the major stock averages to erase losses and make new highs. That would rate as a legitimate rebound.