The market corrected in a strong C wave as I predicted last week but it did not quite make it to the 50 day MA which was at 1222 today. However, it did retrace into the Fib territory and in turn confirming the correction from the wave from 1158-1267. So I am now leaning towards seeing a big market rally from here. Obviously we could correct some more but if the 50 day MA holds then we might see 1300+ fairly soon on an Intermediate C wave or 3rd Wave. The TA is at 1249 so this can potentially turn into a bearish trend but I think the market will recapture it tomorrow or the next couple of sessions. What is interesting is what the market will do after we get to 1300. If it's a W3 then we will rally into January and possibly see 1400 but if it turns out to be a C wave, watch out below!
I closed my shorts towards the end of the day and went margin long and using the 50 day MA as the pivot for this trade.
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