« Has the Stock Market hit a Bottom? »

Okay, let's not get too foolish and call this the bottom (such a thing can only be confirmed after the fact, of course).

But having said that we are finding signs on the short-term charts (refer to the most recent blog post "S&P-500 hourly chart") that could call for a sharp short-term reversal at the very least. Shorts may want to be careful and even consider booking profits on at least a good portion of their winning short stock and bearish options positions.

Make no mistake, there are no buy signals at the moment and taking long positions may not be prudent just as yet, but it is probably time for shorts to start thinking about the risks.