Sparkling April Fool.

U.S. stock indexes roared to life Tuesday with a major rally that featured a nearly 400-point gain for the Dow. Equity investors appeared eager for a fresh start, drawing encouragement from better than expected readings on a manufacturing sentiment gauge and a report on construction spending in March. Some market players see Tuesday's rally as part of a bottoming process that still has a way to go, according to Standard & Poor's MarketScope.

Lifting the sparkling April Fool's Day rally:-

1) positive comments from Goldman Sachs on Dow industrials component JP Morgan Chase (JPM), saying the bank may post "virtually" no writedowns on collateralized debt obligations this quarter.

2) Lehman Brothers announced that it has priced a $4.0 billion offering convertible preferred stock. The proceeds from the offering will be used to bolster Lehman's capital and increase its financial flexibility.

3) A $19 billion writedown by Swiss bank UBS reinforced the view that the banks were aggressively scrubbing their books clean of soured investments tied to the U.S. housing market.

Tracking the Dow on Tuesday,01/04/08.

A stylish opener for the new quarter.Furious bulls who have earlier cut their losses have started this April Fool's Day stampede on wall street with a vengeance.They are starting anew.

It's the best second-quarter start in 70 years.

There's no more the fear factor."Investors are starting to realize that it is unlikely that other firms are going to disappear overnight like Bear Stearns did."The closing bell candlestick was a toppish indecision doji.The bulls might need a pause before they continue their fiesta.

Investors seem to be taking comfort in the fact that major financial companies are moving swiftly to address liquidity concerns and boost investor confidence.

There was a bright spot Tuesday in news that March manufacturing was not as weak as thought.

The Engulfing candlestick was a very encouraging sign that we are gearing towards a new horizon.