The market is a tough call now that we got a reflex rally off of yesterday's drubbing. The bulls will say that we are heading into the turn of the month during a seasonally strong part of the year. The bears will say that there is still a lot of complacency in the market, evidenced by the fact that the call buyers have not missed a beat. Additionally, imbalances may be coming home to roost.
A turn of the month rally would likely make for an excellent short setup heading into the seasonally weak part of the year with complacency running high. The immediate future is a much tougher call.