We finally have a pretty strong intraday reversal, which took out the early lows. The question now is whether the bears finally press a bit or do the dip buyers do their thing and bounce us right back up?
It all boils down to the close. A weak finish would be an indication that maybe a slight change in market character is setting in. I don't expect the dip buyers to back off quickly or easily, so I'm not going to be too fast to trust in a reversal until there is a dip that actually lasts more than a few hours.
I'm happy to admit I'm rooting for the bears here simply because I believe that some downside action would give us better trading opportunities. Stocks would be less extended and we'd have the chance to consolidate a bit.
The idea of a pullback to set up better charts seems almost like a quaint, old-fashioned notion these days. But it is difficult to completely abandon common sense. Some weak action at this point would be quite healthy.