The action today was indicative of a market that is a bit confused here and typically this means that a pull back of some sort is just around the corner.
With the action today and the probability model both saying the same thing (Lower Short Term Prices Upon Us) It would be prudent for short term position traders to take their long positions here and await the pull back before getting back on the long side. Aggressive short term traders can look to exit their longs and put on a short position as it looks like we should get 30 to 40 S&P 500 points to the downside here.
Once this correction has run its course then I look for the real fireworks to start on the upside as a late year buying panic hits the street.
So, continue to buy on weakness and look for this weakness to be upon us very shortly, like tomorrow at 9:30 am. EST
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