Today's move to 1219 had a 5 wave form and it's indicative of an A or a W1. The subsequent move to 1227 seemed to be corrective B wave or W2, how this upswing behaves tomorrow should give us a better idea tomorrow on how to label it. As of now, we had a confirmed bearish short term trend and this is an expected bounce. However, the cross on the MACD yet again to the bullish side can also imply another 10 point+ wave up and we should get the answer tomorrow. I am holding my hedged positions until a Fib retrace which will come sooner or later. On a side note, the cuts in payroll tax, 100% exemption of capital equipment purchases for business and extension of tax cuts is a positive for the economy. So there will be a bullish bias for the foreseeable future, as in the next few months.
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