This is a market filled with players that have a lot of cash on hand. Nobody wants to jump in with both feet because the fundamentals are deteriorating as seen by the macro data. On the other hand, earnings haven't reflected these bad fundamentals because they are backward looking.
Yesterday's trading proves that hedge fund managers are still underinvested and nervous. You don't get a big gap down open and then reverse to finish up 1% if the fund managers are fully invested. This is a sticky positive that the bulls have going for them. Until we see more fund managers jump in and embrace this market, you will not have a great short set up.
I am still long, but if we rally strong into the close, I will probably sell.
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