The 61.8% retracement level was almost reached today and now the conditions are ripe for a rally (or bounce?) starting this Friday or early next week. The intermediate trend is still UP and the sell off that started in late October is still considered a correction. After all, the TA which is currently at 1220 is still above the 50 day MA at 1207 and I expect the market to test the TA at the very least (should Santa not come this year with a year end rally). However, I lean towards seeing 1300+ so it will be interesting to see how the news will change over the next few days. The media usually trails the market as it tries to explain the reasons for rallies and sell offs. And not that the European problem is not real (it is) but we had that same problem when we rallied almost 20% from 1074.
Happy Thanksgiving and Drive Safe!
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