I was stopped out of my last short position today, so I am now partially long. I will not look to short the current correction as I think the risk is to the upside. Rather, I will be looking to add additional 1/2 positions in index ETFs as the pullback progresses and will complete those positions on a breakout above this week's highs. Of course, this will require waiting through some drawdown this coming week, but if you take a look at what happened in gold this week, I think it paints a good picture of what will be coming in the stock indexes.
So many people have declared that the rally in gold is over, and by Wednesday noon, I was almost ready to agree with them, but gold went on a tear squeezing the bears. We could see a similar move in the stock indexes once this pullback is over. I expect at least one hard shakeout day to trap the bears. Only a sustained move below the March lows or an IBD "Market In Correction" call would alter my view at this point.