Investors are coming to rescue the market from yesterday's dramatic sell-off as if it were a damsel in distress.

Early this morning, S&P Futures, Dow Jones Industrial Average and NASDAQ-100 futures were all up in trading in Europe. The Shanghai Composite Index, whose decline lead to the drop-off in U.S. markets, rebounded today helped by supportive comments from the government and buying by individual investors, according to the Wall Street Journal (subscription required). Investors may be sitting on the sidelines until Federal Reserve Chairman Ben Bernancke's testimony before the House Budget Committee later today.

The world markets may have jumped the gun on China. Many people in China keep their money in the bank or propriety rather than the stock market, according to The Journal, adding that analysts argue that the markets remain too small for any move in the indexes to have any impact on consumer spending. The U.S. economy remains strong too with consumer confidence almost a 6 year high.

Even though this may not have been a market meltdown Investors shouldn't just shrug their shoulders and continue as if nothing happened. There are reasons to worry. For one thing, many Chinese stocks have gotten huge valuations on U.S. markets that might not be supported by their underlying business. Plus, the shakiness among subprime lenders isn't going to get any better.

The key as my follow bloggers and "The Hitchhiker's Guide to the Galaxy" point out is not to panic. Don't start burying your money in Mason Jars in your backyard or stuffing it inside your mattress. Data shows that investors do well in the market over the LONG-TERM provided that they have a diversified portfolio of investments. In other words. don't put all of your eggs in one basket.