By Marc ChandlerNEW YORK ( BBH FX Strategy) -- Markets rallied strongly in response to the European developments. Yet it is an exaggeration to think that risk appetites returned as the whole month of October has seen equities, emerging markets, commodities and foreign currencies trend higher, recovering from their neck-breaking, wealth-destroying plunge in September. Still, the advance on Thursday was impressive, helping propel the euro and the S&P 500 through the 200-day moving average, allowing sterling to test its similar moving average and pushed the dollar to yet another marginal new record low against the Japanese yen. We think the market is getting ahead of itself, but the technical momentum and positioning may allow for an extension of the move. Medium-term investors may need to be patient, but the fundamentals will likely reassert themselves shortly.