I don't buy this rally, just seems to quick for me. Lack of leadership is the problem. But that doesn't mean it can't develop.
Where do I stand? I haven't gotten short, it was too early for that, and didn't move completely to cash since I did believe a small rally would develop. Can't ignore today, we did get a follow through day, which confirms the rally.
For the rest of the week compile both a possible long and short list. My opinion was that the rally would carry to the 50 day moving average, which all the indexes broke above today. I was looking for 2 - 5% rally, we got 2% today. I think this momentum should carry a little longer. Then the market will most likely stage a sell off. The strength of that sell off, and the number of stocks that setup to break higher afterwards will be the key.
I wouldn't hold my breath, even though I was shown a chart that it is possible for the market to rally significantly from such a short correction. Even 2000 had a great bounce.
Point being, not the right time to do anything. Best to sit on the sidelines and prepare. If this is a real rally, you'll have the next few weeks to get long. No need to rush, this one, you can wait and see if it proves itself.