I was anticipating some sort of reversal at this point. May be it will still come tommorrow or sometime later this week. But for the time being short the markets is the wrong stance and so I closed out all of my positions this afternoon.
As I type this the Russell 2000 is up over 3.5% for the day! It is bad enough that I was already short while this was happening. However, after it has already happened, I am not going to risk staying short into such a strong market.
If this rally does turn out to be a bear market rally, when the markets do reverse I will not hesitate to get short. Until then I do not have sufficient confidence in this rally to initiate long positions so I am going to remain on the sidelines.
Good luck and good trading!