Well I were 1 day early trying to call the major top on friday and we got a very WEAK rally on monday with very low volume. There was no economic data and often when we dont have any data , we get a rally. As seen on the charts we are in a very bearish chart pattern rising wedge and I think we will breakdown and plunge very fast from this pattern very soon. Its hard to say exactly when, but I bet today on FED des. we will plunge and start next leg down. IF we should rally up the upside is only 1130-1150 and not expecting ANY higher than this. The downside is 800-1000 in SPX which is big, so I am shorting markets here and if we move up more I will add. At the moment I'm about 80% short and 20% cash cause I added FAZ in lower 13's yesterday.
VIX telling us a very big move is comming soon and I expect VIX to breakout to the upside with positive MACD cross. But for now I am very bearish markets and think we are able to get a nice plunge over next days/weeks/months...........
Be careful going long, dont fight the trend. I've learned in the past that NOT try to pick a winner in a down market. (I know markets short term trend is up) but I get so many signals telling us we go lower. Also the dollar bottomed which I got long friday so when dollar is moving up, markets most likely moving down. Everything pointing to lower markets really and the QE2 will be a disaster for markets. DOW jones hit my upterm target of 10.720 so I dont expect it to make a new high for now. If you believe in astro or gann, we have a new moon today 10. august and a MAJOR Gann turning point..just to say it..The very short term targets in SPX is 1000-1050 area which is likely this week if a plunge starting....
Have a nice day
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