“How ’bout a late-day rally, midget slave?”

Your mustache, not mine. I covered a lot. I still have upside exposure to the downside, just less.

The question…go long?

Not really.

I am not inclined to go long any (SSO: 24.45 -3.85%), nor am I inclined to buy (SDS: 103.29 +4.86%). I don’t think either trade has great risk:reward right now, mostly due to headline risk, though a bounce tomorrow seems reasonable. In fact, we will likely go to 1340-55 before going back to 1310. I would love the op. to short higher. [Ed. note: I added a small amount of SDS at the close.]

CNBC paints the picture with rose-tinted glasses, however I feel more likely that today’s rally was the result of a good ol’ fashioned Gasparino logjam.

Still, (INTC: 13.00 -2.40%)’s recovery says a lot and a green finish to the Naz confirms that. I think we have a bullish bias for short term traders, whatever the source (genuine optimism or short covering) and this should be considered going forward.

Chart:

Bullish: Notice we didn’t close below 1310, the low in Jan. ST target 1340.

Bearish: We have negative readings in several momentum indicators and a totally failed bounce highlighted in the blue oval. We broke the dashed green line support. Overhead resistance at 1340 and 1370.