We are starting to see the short term volatility that is indicative of a market attempting to put short term low into place. Today was a good example of such activity.
It is a good time for short term short sellers to cover their positions and take some very handsome profits. From here, aggressive traders should look for a spot to establish some short term call options or long equity positions.
Intermediate and Long Term Traders should continue to be extremely defensive with an equity allocation of no more than 35%. If you did not scale back your equity exposure yet, then this rally will allow you to do so before the final leg lower comes our way and final bear market moves lower are very typically bloodbaths so be prepared.