Markets rally but recovery may take a while

Markets finally had a good session on Wednesday.

The S&P 500 rose 1.8 percent, the STOXX Europe 600 gained 0.3 percent and the Shanghai Component Index recovered from an early 4.7 percent drop to end the session down 0.2 percent.

West Texas Intermediate crude rose 1.9 percent, the Bloomberg Dollar Spot Index rose 0.3 percent and yields on 10-year US Treasury notes rose three basis points to 2.19 percent.

A fuller recovery from the recent losses could take a while though. A Bloomberg report suggests that it could take until the end of 2015 for stocks to return to levels last seen in May.

Indeed, some analysts think that the market may not have found its bottom.

“My gut instinct is that we may not have seen the end of this,” said David Joy, chief market strategist at Ameriprise Financial Inc. “I’m not convinced the downside volatility is over.”