I think you made the right move.
MCD/COST seem toppy to me (even both are good stocks and should be bought again on sell offs).
However, the sharp rebound from false break down (1075 on S&P500) may indicate that we have a near term bottom in hand for 2011. The pull back in next few days to 1150-1160 or even 1120-1140 would offer entry points for possible multi-month rally into year end (just a possibility).
From valuation point of view, emerging market is a lot cheaper than US at the moment. And most people hate emerging market now. Those safe heavens such as utility (even MCD) are pricing at some premium.
