Market view

Markets getting lots of sell blocks over the last days which indicates that smart money is selling big blocks and buying in shorts here before a nice drop. TZA had its highet volume yesterday ever and I saw some nice money going into TZA. Overall the SPX is about to get the daily sell signal and the Nasdaq is very tight and in the rising wedge with a big negative divergence. VIX moved up huge at called with the inverse HS pattern and the dollar is still strong.

Overall McHugh have a cluster fib date TODAY 11th January. Last cluster fib date was 26th October 2010 which was BEFORE this massive rally. Big reversals often occures near these dates +/- a day. So most likely this is a major top before a nice correction or this might also be a top for the next years. All in all its hard to say - I think we could see some very nice action to the downside soon with the fib cluster date today so many signs showing we should head down lower. The Russels already gave a daily SELL signal on Friday and I think overall markets will follow. China and India and Europe is breaking down further with the BDI very weak too - all signs pointing down. Well then we might just go up ? Overall just follow the price and trend which is up , but just turned from up to down in the very short term (especially in Russels)

Today is a fibonacci cluster 11th January - which reflects that a major major reversal should be in hand +/- af few days. At the moment it looks like we are near a major top and a big move to the downside should come. Also note that statistics tells us when the first week trading days in January is green - then from mid to late January markets has seen declines above -5%.

But all in all - I recommend to just follow the price/action and short term trend. I had a sell signal on Russels on friday and very close to get a sell signal on SPX (if we trade below 1260) today , then the sell signal would occur.

1. Note the high bullish sentiment which is opposite as what is was at 2009 March lows.
2. The VIX at extremely lows forming a inverse HS pattern 30 min chart and breaking out higher
3. The dollar is getting close to breakout and is in a wave 3 up most likely ( target 84 short term)
4. Markets is overbought both on daily and weekly charts and has been it for weeks now
5. Markets breath is very weak , regarding that markets continue to move higher , but some big negative divergences is in plance on the daily charts.
6. Insiders has been selling out so much as they have never did before.(But still did it for months)
7. If markets is about to run up higher - markets needs a healthy pullback to neutralize the indicators and stuff and make the bullish sentiment fast bearish again(then we might go to 1300-1400)

All in all - sell signal triggered in Russels on Friday and is about to get the sell signal in SPX below 1260, so a break near that level would be a great shorting opportunity - most likely stay in cash now , follow the short term trend.

Steve Sjuggerud which called the March 2009 lows says in his recent letter on dailywealth that markets is now complete opposite as what it was march 2009 , thats very scary cause people are getting so greedy now , so its time to take the money off the table and be cash or go short.

Robert McHugh had a phi mate date turn 6th January ( top until now was 5th January ) and a big fibonacci cluster date at 11th January today. Last cluster was 26th October 2010 which was right before the major rally we had over last months). In his latest analysis he is saying that the move from 1010 was a C move up to complete wave B , before a nasty wave C down should occur from now, anytime.

Just saying....lots of things pointing down at the moment.

Good luck hope you like this

Have a nice day everyone