As expected markets did move choppy up into FOMC and sideways yesterday , after FOMC it was quite a non event, but I expect a big decline to begin now. 1. FOMC a non event - no positive news and with no "better" news I expect the markets to react negative to this today and tomorrow.
Today is a very important day - looking at the Russels we are about to get the buy signal - today will be telling , if Russels moves up higher today - then we should get out of shorts and long small caps - but I still believe its a HS pattern but again if trend tells me to go long , better go long. Small caps already topped and I also believe that the Russel 8000 level is the top, now we have SPX 1300 and we have Dow 12.000. Everything good round numbers for a nice correction to begin. I believe that the correction should begin from today. I have a nice chart from ETF corner on the euro and we are RIGHT at resistance. Watch out for the dollar to plunge down from here 1.37ish and the dollar rally cause we still have the nice 30 min and 60 min bullish macd divergence. Markets made dow, spx and russel to some nice round numbers , psychology levels and that will be it- we will just get above them and then fast down and I expect us to start moving down sometimes today with the euro falling down and USD getting stronger.
SPX target by end of this week is still near 1250's SPX , so today should be telling. If we get a nice rally today I will get in long positions cause the trend telling me that today is either breakdown or breakout now...
But all in all - markets VERY similar to April 2010 top , choppy up and down like we saw last weeks - (top forming) we havent moved anything... from 1296 to 1270 , back up t0 1300 and then in 1290 zone again.......Same pattern , near FOMC day too - we know what happended 1 week after.................lets see if this is any different
Time will tell - have a nice day
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