http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=6&dy=0&id=p38955316076&a=266398464

8 days ago (11) in what we jokingly referred to as “three gazelles leaping” the market gave us three power bars. The strength and power (and rarity) of this formation augur well for a bull wave.  Today a strong confirmation bar put an exclamation point on the three gazelles.

How long and strong this wave is, is, once again, totally unknown.  (It may be a transient bear market rally.) But you have to hop on the board and ride it.  Right now the stop is 2% under the low 4 days back.   In situations of great uncertainty a trading posture is preferred to a trend position.  But you can always expand your stops if it looks like a trend.

We remain long term bullish.