The title of this entry is the question of the day, and it should be. Getting this wrong will be costly. Let me tell you what I see. A record amount of short interest exists in the markets. The last few days they've been squeezed HARD. The financials especially. That suggests it's a bear rally and nothing more. BUT... many indicators we use hit levels associated with what's called "a 4 year low" when the markets bottomed last week. We THOUGHT that low came in the January plunge of this year, but these readings were more extreme.  We can only interpret this as VERY bullish going forward. So...we have a conflict. The readings last week indicate a possible long term low is in place BUT the characteristics of the early part of the rally look very much like a bear market rally. The truth is we won't know the real answer for a while. I do know this...coming out of 4 year lows no one believes it'll last.  That's a characteristic to look for. For now long stocks is the play until and IF the bear rears it's ugly head again.