Sweet Bull Trap?

The Dow surged over 400 points today in what looks like a sweet bull trap. Everything rebounded today for no strong reason, making it a classic bull trap setup. Many forex traders who fell for the dollar bear trap also woke up to rude awakening when the dollar surged today. A strong dollar in this cost push stagflation can only result in a decrease in aggregate demand on lower exports and all these could add up to a decrease in real GDP over the next 6 months, pushing the economy into deep recession. This is going to be a tough economic problem to solve because rate cuts can do nothing but incite cost push spiral inflation and any rescue package is going to eventually come out of taxpayers' pockets, decreasing aggregate demand further. The real issue here is, have all these already been priced into the stock market? Have the potential for a deep recession alreday been priced in? Comparing with how the stock market did in the past few recessions, there is certainly a lot more room to downside, however, could the higher market efficiency of this past decade dilute the downside pressure? I do personally think so. For now, the market continues to be in a primary and short term bear trend.