I actually shorted again before the market open today. We had a ‘gap up’ this morning (meaning the market opened above what it closed at yesterday) and there is unfortunately still weakness out there.
With that said, most of the big guys are waiting for a bounce and surprised we haven’t seen it yet. So … they are all just waiting. There isn’t enough conviction in the downside move to short big time, and no movement to the upside for them to go long … so they wait.
With that said, most agree that within a few days (max) we will get a bounce.
Again … the strength of that bounce is really going to show us the next move. If it is weak … then expect more downside.
My gut still says that we are going to have a ho hum market for a month … I think everyone is still trying to digest what the world will be like without QE2 and as a result aren’t making any longer term decisions at this stage.