Correction over?

After a very volatile session in Asia our markets took off on a better than expected retail sales report and the S&P is sporting a bullish engulfing pattern, penetrating a down trend line that has been emblematic of this recent downtrend:

(click on chart for larger image)

 

The time of this chart is 3:22PM EST.  We'll see if the S&P can close above the downtrend line (white dashed line) but this is a very strong performance and my hunch is that stocks are setting up for the next leg up.