I reduced my long exposure modestly today as I wanted to lock in some gains after a 14% run in the S&P 500. I believe sentiment still favors the bulls as does seasonality. We will soon be headed into year end and performance anxiety might serve to accentuate any advance.
My main fundamental worry is that the ECB has been allowing Italian spreads to blow out as they have greatly reduced their bond buying. There is an Italian bond auction tomorrow. They will likely take a bigger stand if spreads blow out further but it would be nice to see them a little more proactive. I will be out until Monday. Have a great weekend.