The market decided to put in a clear W3 and at least we now have a better picture of the entire wave I've labeled "C". The 1292 level was the end of the W3 for this C wave and after an ABC bounce, we got the W1 and W2 yesterday and today we got the W3 with possibly more downside to come after a mild bounce. The trend obviously has turned down so we're back in confirmed bearish in the short term as the TA has fallen to 1313. Once the 5th of this C wave completes and I will continue to assume this is a correction within a bull market given the fact that a) 50/200 MA b) This is a 10% correction after a 30% run. One thing that we need to pay attention to is the 200 day MA, the market must bounce above it after the wave is done. If the 200 day MA becomes resistance then the bull market will start looking questionable.
Have a great weekend!
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