Market view

Wooow what an AMAZING and FAZtastic day we had. Markets down huge as I expected and all bear ETF's skyrocket!

VIX made the nice breakout which I told about and we got bullish MACD cross and RSI above 50 which I talked about yesterday, with nearly all bear ETF's up 10%. Take in mind that this is just warming up for a huge leg down which would take us below SPX 1000. What I ultimately think is, the perma bulls will try to feed us and buy the dips so we might have a dead cat bounce either at the neckline in the big hs pattern or 1060-1070 area SPX. But its just another opportunity to add more shorts. Well I'm heavy short since SPX 1125-1130 level and I am holding these major shorts for SPX below 1000. So for now the charts looks VERY ugly on daily chart and we are heading way lower, I dont know if we are going to see a crash like 2 years ago, but we will see a lot downside, thats for sure. The dollar which I predicted and got long friday last week is moving nicely up and euro down.

Today we dont have a lot economic news and therefore I expect for today probably a gap down and then a relief rally, but for tomorrow we have a lot numbers like EU GDP numbers and retail sales and so. I think friday will be another red day like we had yesterday, so for today, IF we bounce, short it ! NO reasons out there both technical and fundamental to BUY this markets. Only PERMABULLS out there getting screwed thinking we go higher, screw them, they really need to learn better. Its really hard to predict the movements in markets VERY short term, but for the intermediate term we go down. Yesterdays afterhours tanked to SPX near 1076 and if I could I would buy it for a bounce play.....I think we have a good chance to get a bounce near 1100 level from this area and then tank further.

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Have a nice day!