Markets been moving sideways mostly for the whole week, not much to add out there and I think a topping is still in process. Overall the markets is still opposite as what it was at 2009 March where everyone was fearfur, now everyone is bullish and not many people thinking markets can go down. But literally - we should have a nice correction beginning from this week. Markets made a WEEKLY doji (weekly chart) which could be a longer term trend reversal. The trend will be confirmed if next week closes down, and I believe this comming week we will see a lot of redness. We should see problems with Portugal and other EU contries and markets should decline. Also take a look at India index, which has been sold off a lot and China too (big divergence) between these countries and markets in the US which has only gone up. China and India is often leading other markets so that should also be a sign that we should see a sharp sell off from this week.
I believe 1150-1180 is a good "spot" for a sell off , and we should see this level in late January over next weeks.
The VIX has made a very clear and nice inverse HS pattern , where the right "shoulder is in" so looking for a sharp move up in the VIX this comming week.
RSI(14) on INDEXES is above 70 , and every single time we have been up here, there has been a sell off or correction at least 7 days after. This will be no exception imo !
The dollar has been moving up nicely and I expect us to see 84 in the dollar soon.
Have a nice day
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