In summary, cash or a "core" bearish position should still be held, but these short-term counter-trend buy signals can also be traded.

"A number of funds have a 60/40 stock/bond allocation rule. Since their stocks got hammered, the 60% has shrunk so these funds will have to buy stock to keep up with their 60/40 allocation, so we could see yet another up day in the major averages before the end of the quarter which would further improve the odds for a short-sale position succeeding, though in this time of crisis, some analysts have said this rule may be lifted."