Thursday’s rally tests our bearish bias.

The S&P 500’s volume was lighter than yesterday’s, giving us indication that Bulls may have less steam.

But an Accumulation Day of higher volume on the Nasdaq boosts the chances of new highs.

We’re not so much in the business of calling tops in the market as we are recognizing markets that are friendly to our strategy.

Heavy selling of late has been a caution to initiating new buys.

We’ve gone as far as adding shorts – though have set tight stops so as not to jeopardize our accounts.

We’ll be ready when the next hands are dealt.