Case for SPX and NDX longs

I am leaning toward SPX and NDX longs on this pullback. All I really had to do is read my own notes. Blog is a great tool - it serves as a diary, a trade journal, and a rule book.

So it is from my own blog that I derive the case for this long:

1. SPX tested 8/9 lows, even though it did not get to 1100 on cash, the futures did test 1102 and bounced nicely (note that futures low on 8/9 was 30 pts below). So we have higher lows developing from that retest. Staying above 1150 on closing basis SPX cash is very important for this trade to be valid.
2. There is a possible solution in Europe, while it is still yet to be completely put together, I like the TALF-like approach. I have to say that I am very skeptical about how quickly they get this thing going, but it looks like ECB/IMF will keep things propped up until then. I know I am jumping the gun on EFSF finalization, due to German vote still in question tomorrow. I say it is "Ja" in Bundestag on Thu Morgen.
Finns approved it today without any mentioning of collateral, how funny, after all that fuss they produced earlier. Did Frau Merkel send a free keg of Deutsche beer to Finnish parliament prior to the vote?
3. XLF has bottomed for short term. It will provide a boost to SPX. I expect a continuation of XLF rally to 13.48 level at least. XLF is a lifeline of sinking economy.
4. SOX is acting really well, thus supporting and leading NDX higher. SOX has been an early heads-up indicator of what NDX and entire market will do. Speaking of NDX, it is way above 8/9 low and really outperformed the market on this retest. (2234 gap just got filled, as I type)
5. Crude oil has bottomed and is providing good support to energy sector - important SPX component.
6. Economy is not in recession. While there is a slowdown in order, all economic reports coming out currently are pointing to a slow growth. We may have a quarter left before we find out we are going into recession. Plenty of time left to trade this market in the range, before it will be a steady short.
7. Short interest and sentiment surveys are showing extreme level of scepticism - a very important background for sustained rally.

I could continue being a doubter on sidelines, and be a part of the reason for this rally, or join in and be a part of the rally itself. I choose the latter.
SPX is going to 1250, I intend to get a big chunk of that.

Good luck!

Update Sep 28 @ 5:30 pm edt
SPX held 1150 on close. Market is worried about all the same things and more... I still expect a rally from this level tomorrow.

Update Sep 29 @ 11:30 pm edt
My case got whacked in the head due to NDX severe underperformance today. I do not want to see the leader being taken outback and shot, just as I went long. I quickly cut the position loose and will remain flat until I can understand the message of the market. This looked a bit more than simple profit taking.