The market confirmed it had been correcting sideways for the last couple of weeks and we probably saw either a W1 of another bullish leg or alternatively a W5. I personally think it is a stretch for the market to go all the way to the 200 dma without any Fib corrections but obviously anything can happen. I've see overbought getting even more overbought in the past, so I think the safest way to trade is to trade the trend at this point. I had to exit my shorts at 1226 as this hit my limit and I will start trading again once the TA hits. Persistent trends are too risky and trade so it's just better to wait.
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