The market was able to reverse all the losses from yesterday and challenge the 1999 resistance level, eliminating the bearish 1-2 set up and putting into question the V wave label. If the index overcomes 1999, there's a good chance the all time high will be challenged. Goes to show just how much the market was worried about the end QE. I am sure some excuse will come up soon for a correction or even a sell off, but in the end it will be just excuses to screw bears and panic sellers as this market has shown again and again for the last 2 years. Bears are probably between sore and numb at this point.. here's a chart to remind us of all the "panic attacks" this year.
But as I always say, it is about the economy! strong economy=strong profits=bulls win. Until, the economy shows real deterioration or sharp increases in interest rates, the market will be pricing in profit growth.
I am holding on to my hedge but I might stop out if 1999 and try it again at 2019. I am sure the market is due for a pullback, but no point in fighting euphoria at this point.
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Short Term Trend = Bullish
Medium Term Trend = Bearish trend being challenged
Long Term Trend = Bullish