Market view

Well what a day yesterday after the FOMC statement. 600B QEII for next 6 months is a lot - but I really think its already included in the markets now and its sell the news. Markets went up and down very fast after these news and ended up with nearly a breakout. We are now filling the long term gap at 1197-1200 area and we also have MA(50) on Monthly resistance at 1204 area. Remember things can overshoot for a VERY short time. And I am talking about the MA(200) on the weekly chart which is 1194 area. We are right above - but markets should not shoot high above it, but they are doing this often so they can take out weak hands which is what they want to do. So I expect a BIG sell off to come before week end, so we must see some big selling pressure by today or tomorrow.

I see markets trying to breakout here it looks like we are making a hanging man candlestick and lets see if its a reversal pattern this time. The dollar plunged back to the WEEKLY trendline support and its gotta hold around here. If not it could get ugly for the dollar and good for markets. I think the dollar will hold up and bounce with a big rally. maybe a double bottom.

The QQQQ still in the huge rising wedge, lets see when it breaks down - but expecting to see it today or tomorrow. Its POMO today , but lets see - I dont think they can hold markets up at these moments.

DOW still below its recent highs and SPX is still below april highs. The financials are still weak - but broke out a bit yesterday, but lets see if it isnt the last push up. Its a bit frustrating that markets keeps going up - but this is just what they want to do. My Summation index is STILL on SELL signal from 19th October and is NOT giving a buy signal, which confirms that we wont go higher and we have a trend change. Lets see if the summation index and we rally big today it will most likely confirm a short term buy signal in the summation index. But I wanna see that action first - cause this is one of the best indicators our there for swing trades and we will most likely just have a gap up and then sell off.

Have a nice day