We had a turn around at the end of the day Tueday and we had some follow through today. While it is nice to see two days of strength it is going to take more than two days to make me feel more bullish on the market. The SPY does not look bullish on the longer term time frame (see figure 1 above). It seems that the markets have struggled without the help of the Feds QE program. It would be nice to see this market rally without the help of QE, but right now I do not see any evidence of that in the price action. The fed has been hinting that it will provide additional monetary stimulus if needed. Currently we seem to be in a deflationary environment and we are seeing that in asset prices. We are also seeing that in gold (yellow line in Figure 1). The current environment has also brought down the price of gold, which has been relatively strong over the past few years. Gold is currently trading around 1645 $/oz and has come down from it's high of over $1900 $/oz. I think it is best to be patient right now. Market do not usually turn very fast and trying to pick the bottom can be difficult. Cash is probably the best position right now until I start to see some technical improvement in the markets. Right now, I feel that could still take a few months at the minimum.