Market view

Well we got a half day on Friday with stocks down a little. Looks like we did not get the little move up as expected, but then got down to 1187 pivot support area as I expected we should go before a move to 1210 area.

Well I think we could see the nice move early next week. Remember on Monday we have a DOUBLE POMO day...... so guess we wont go low on monday. I still think we are setting up for a wave 2 up to 1210-1215 area before the ugly wave 3 down.. And for me looks like wave 3 down will start with Spain and some war in Asia as a trigger for sell off.

I got in some small caps longs "CMM" and "SNSS" friday, cause I think they are going to run small caps early next week. What I see in the IWM is that small caps are about to get a bullish MACD cross from negative to positive which usually gives good pops in markets. But again, this line could be rejected and turn back and stay negative, but with POMO in works monday with double up it will be hard.

We made a big move down last seconds in markets and is it because they should form a little inverse HS pattern ? We dont know, but possible..

If we look at the 30 min it tells me we might have a gap down on monday , because my 30 min chart tells me we still have more downside before turning up.

Overall we should make a big HS pattern in markets.

Overall I stay a bit bullish for early next week, but after that very bearish. Watch the 1200 resistance and then 1173 low. What I hope is a nice pump in markets with double POMO program, monday tuesday and then hard down to 1130-1150 SPX.

Have a nice weekend