The 1250 level was breached yesterday but support was regained and the market is now on the counter rally. What happens tomorrow (and possibly Monday) should give us an idea if this is an ABC move in preparation for a huge sell off or the beginning of another leg up to 1343. The trend is down and the market is still way below the TA but I think the market will test the TA before showing its true intentions. In order for the market to turn bullish again, it needs to recapture and break the TA. Until then, the target is 1220. I will start taking short positions around the upper resistance levels. Also, some of you might have noticed that I put a 5 wave label on the recent sell off. I am doing this to keep a better perspective myself as there is a W4-W1 wave violation which technically should negate the count. I've seen 5 Wave structures before (as in W1-3-5 being impulsive) where this has happened and I think it counts better than assigning it corrective labels as orthodox EW would call for.
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