Wow - market sentiment is still at extreme and extreme bullish. Markets will have a correction or a crash comming with this sentiment it cant stay down here for long thats for sure. Everytime the markets has been this bullish on equities we had a correction or sell off. Last time was may 2010 (right before flash crash and big move down to 1010 SPX. Lets see how low we are going this time. Overall I still believe 1150 is a good target for a correction.
If this is not a major top, cause it can very well be a major top - then I think we move to 1150 SPX level and then rally up again. But if this is a major top it could start with a big flush down very soon. Remember the dot.com bubble in 2000 the markets SPIKED up huge 2-3 days with near 200-300 points in dow jones to make the overthrow up. After that the markets fell from near 12k to 7k in dow jones...... so dont come and tell me that markets cant fall a lot here. The put/call ratio tells us we should short short short all we can now. Its only short covering which is making the markets go higher here now , not big boys buying this rally but selling the rally now in big blocks where dumb money going long.
All in all , markets may push up to 1291 SPX and top there today or so before the big drop.
Have a nice day
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