The sharp rebound in US markets yesterday indicates that the recession fears were a bit overdone. The latest initial jobless claims came lower than expected indicating that the labour market is not loosening as many sceptics feared. However, it is important to understand that the US economy is slowing down, and along with the struggling Chinese economy, it can pull down global growth in the near term.Indian valuations continue to remain elevated and, therefore, there is no room for sustained rally in the market. Tech stocks are likely to stage a recovery today drawing inspiration from the positive US cues.