Still Long, Still Bullish

Note: Blogger was down on Friday. They took down a number of posts from all the blogs. The posts are back but the comments still seem to be missing.

The recent market action is similar to what happens at the bottom of some corrections.

Here is SPX recently:

And here is SPX in July - August 2010:

I circled the bullish reversal days. These are followed by significant sell-offs, before the market starts going up. I expect to have the same outcome this week.

With this pattern in mind I did some micromanaging of my position, selling almost half after the open on Friday and repurchasing it before the close. Should the market not show some strength today, I will exit all my longs.