CORRECTED - US STOCKS-Wall St higher, S&P hits key low before bounce

                                
  (Corrects lead to say "flash crash" was May 6, not last
month)
                                
* Germany's parliament approves bailout contribution
                                
 * Bank shares gain
                                
 * Indexes up: Dow 0.2 pct, S&P 0.5, pct, Nasdaq 0.4 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
                                
 By Chuck Mikolajczak
                                
 NEW YORK, May 21 (Reuters) - Wall Street was slightly
higher in volatile trade on Friday as the S&P 500 fell below
the level reached during the market "flash crash" earlier this
month before muscling into positive territory.
                                
 The S&P rebounded from several days of declines that had
driven the index down 12 percent from an April high.
                                
 Stocks fell at the open as concerns over the euro-zone debt
crisis and uncertainty over the effects of U.S. financial
reform fractured investor confidence in risky assets.
                                
 Bank shares rose a day after the U.S. Senate approved a
sweeping Wall Street reform bill, capping months of wrangling
over the biggest overhaul of financial regulation since the
1930s. For details, see [ID:nN20244272]
                                
 JP Morgan Chase & Co <JPM.N> advanced 3.3 percent to
$39.08, and Bank of America Corp <BAC.N> rose 1.4 percent to
$15.50. The KBW Bank index <.BKX> gained 1 percent.
                                
 "We were way oversold coming into today," said Angel Mata,
managing director of listed equity trading at Stifel Nicolaus
Capital Markets in Baltimore. "What we are seeing is a bounce
after having some tremendous selling pressure in the market."
                                
 The Dow Jones industrial average <.DJI> gained 19.80
points, or 0.20 percent, to 10,087.81. The Standard & Poor's
500 Index <.SPX> rose 5.36 points, or 0.50 percent, to
1,076.95. The Nasdaq Composite Index <.IXIC> climbed 7.83
points, or 0.36 percent, to 2,211.84.
                                
 The S&P hit a session low of 1055.90 before shooting as
high as 1080.67 within a half-hour, led by the turnaround in
financial stocks.
                                
 The closing low on the benchmark index for the year was
1056.74 in February.
                                
 At Thursday's closing level, the S&P 500's 14-day Relative
Strength Index had fallen below 30 for the first time since the
benchmark hit 12-year lows in March 2009, indicating the index
was oversold.
                                
 Germany's parliament approved a plan to allow its
government to contribute to a 750 billion euro ($940 billion)
emergency debt package despite wide public opposition to the
move. [ID:nLDE64K0S1]
                                
 The Chicago Board Options Exchange Volatility index <.VIX>,
Wall Street's so-called fear gauge, fell 6.2 percent to 42.97
after hitting a high of $48.20.
                                
 May equity options and some options on stock indexes will
stop trading at Friday's close and settle on Saturday, which
may increase volatility.
  (Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)