I think it's time to take a more bullish view.
We are approaching the S&P 1170 price level which I identified earlier as the most likely bottom for this pullback. I don't have a high confidence for this call. It's a low-confidence call as compared with my prediction of a bottom in September, but I will make it anyway. I think we'll get more "positive" news in December (positive for stock speculators, that is), enough good news to manage a Christmas rally. I understand those who will prefer to wait for lower prices, but I would still take some long positions tomorrow. My reasons? Whatever pessimists may say, $600 Billion is a big chunk of liquidity, and barring unforeseen events, Bernanke should eventually succeed in adding a stock bubble to his list of bubbles, if in nothing else. And the price of 1180 is less expensive than 1230!