Its too late to cut losses after a reversal because trends/reversals cannot be predicted, we only know them in hindsight i.e its not possible to see a trend/reversal until after the fact.
I don't know about the US, but lack of news from Europe is scary. ECB is currently buying sovereign debt, but no one knows how much and where. EU banks are still too leveraged, overexposed to bad debt and short of cash as Lagarde suggested this week end, but she was soon threatened to be wacked (politically) if she kept on saying it. But the real threat is economy slowing further even for the best in the class. The word on the street is everyone keep their mouth shut. Now, this in Europe generally means: hold your breath and get ready to go under. I have been wrong before though.
Assuming you are a trader interested in short term market moves, you will eventually realize the folly of trying to apply logic to the market. This is especially true at times of low participation. There are days when logically the market should do this or that, and eventually it often does, but the market just rattles around pushed hither and yon by I suppose the actions of locals in the absence of any significant institutional participation. This might be a good time to give your dog a bath.