You will also notice that the SI is coming to another bull support zone of the downtrending white line. This has me near term bullish.
Another reason I'm getting bullish is because of the inverse correlation of the USD and the equity markets. I believe the US Dollar put in a 4th wave up and is now in a 5th wave down.
Finally, my current wave count has either 5 waves down ending C of Y in an ending diagonal yesterday, or 1 more low coming to end wave C down. If we get a new low around 1280 it would be the latter of the counts. My bearish count is also looking for a wave 2 retracement upward. When a bull and bear count align in such fashion (both looking for upside) it's a good risk/reward situation in my book.
Thanks for reading.