Market view

Overall not much to say, markets just slowly drifting higher on no volume.....I am still watching for a big move down short term , at least to 1196-1206, but signals showing me we may have a much bigger move down comming. But let price/action tell me about that next days.........

Overall the last 5min looked very bearish , as we took all gains out of the days slowly gridning higher.

What is interesting here is that on TZA we have BULLISH DIVERGENCES on the daily chart , 60 min chart and 30 min chart. Look at where the trendline was last time and where we are right now....right at a BIG trendline since before AUGUST month......so TZA been moving down big since August, but right now and here it looks like we are about to bounce from the trendline support. Look at all the bullish divergences in TZA.

Both the 30 min and 60 min chart on SPX is very bearish and showing we should move down with bearish divergences, which means a probably big move down comming tomorrow......

Why I also think we could see a major move down soon?

1. Everyone think of santa rally is comming......
2. Everyone expects the Irish bailout to pass tomorrow (Tuesday). Well....if they pass it, we may get a pop, but if not....there is big trouble ahead.........
3. Bank run day tomorrow in Europe where people are going to withdraw money from their banks to make a revolution against the banks.
4. XLF looks still weak and not following the rally up, looks like a corrective move up.
Well overall , looking for some big downside in markets comming up next......we will see, IF we wont get it I am looking for 1196-1206 and will buy the dip if we dont breach it...but careful out there.......
5. BAC(Bank og America) made a bearish harami today......dosent bode well for financials......I would short BAC.
6. VIX weekly chart still very bullish, the question is if VIX wants to move down to the weekly trendline since 07 lows which is at 17 before the big run? Well we are at 18 now, so if this is true only 1 more up day or so before support. But may also breakout of this area anytime soon.
7. The 5 day avg of ISEE hit 140 today, so a top is likely in the forming. Every time for 2 yrs this level was hit, a top of some kind was being made. When the 5 day is > 138 and the 10 & 20 day avg > 130, a major top was in. Fortunately for bulls, the 10 & 20 are a bit below 130, so they might be getting just another buyable dip when this next correction takes place, likely down to 1140-1160 or so. However, if the market continues higher and the 10/20 avg surges above 130, a major top is probably in (based on the past thresholds).
8. New moon just occured(For astrology traders, often marks tops)