The market went down as anticipated and it did not even enter the 1300-1310 area, which in turn has caused a higher low and potentially a base for a bullish W3 wave. Obviously, it's too early to tell at this stage since key support and resistance levels have been holding. But it looks to me like the market has the intention to rally over the Trend Average and perhaps the 50 day MA which will likely turn the intermediate trend bullish. So if you're short, watch for this as it can save you a lot of headaches and $$$. Also, I wanted to post a chart of the stock market expansions and retractions over the last 100 years relative to P/E. Notice the market heading into a sub 15 P/E ratio (it is currently at 13) on the chart and how these ratios have retraction and expansion cycles. Going by these numbers, there is a very good chance that we have been in a correction within the larger trend for the past 12 years and if history serves as a guide we are probably about to embark in a major bull market sooner rather than later (talking about yearly time periods). Everything comes in cycles and I think the corrective cycle in the bigger picture is about done..
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