Was that it for the Correction?

After a horrible start to 2014 that saw the S&P 500 sink about 5% through the first five weeks of the year, stocks in the broad measure of the domestic market have come roaring back.

The chart here of the S&P 500 shows the decline in January that took the index down below its 50-day moving average. The pullback took stocks all the way down to where they were back in October. But since falling to its early February low, the S&P has recaptured all of its lost mojo.

The index now is firmly above its 50-day moving average and appears to be heading back to new highs.

So, was that it for the correction? Is the wider sell-off that many thought was firmly in progress now just a bad memory?

The price action of late certainly suggests that things are “back to normal” in terms of being bullish. Of course, these days “normal” means stocks that are overhyped, overbought — and a market that’s overly bullish.

As always, the charts don’t lie. The recent surge in stocks toward new highs represents a renewed bullishness, so keep an eye on stocks here to see if, in fact, we breach that new high territory. If we do, then we definitely can say that was it for the correction.