Market view

The markets been up as expected early this week and there is a good possibility that the move up since the big move down on Friday is about to get finnished. I think today could maybe be the last day before next move down is comming, but probably we could see some up/sideways action. We are still below MA(10) and our mechanical buy/sell systems is still on a sell signal and wont get to a buy signal - only if we make a close above 1290 , which would indicate that the short term is up from down. But until then we should continue trending down, question is only how low we will go.

I still expect a move to 1180-1220 level - but if the markets shows us opposite we may be forced to get long. In the bigger picture this might ge a 25-years head and shoulders pattern with the right shoulder being in, if this count is right - then we have a nasty move down like we have not seen before comming.

All in all - looking for a reversal soon after this early week bounce, probably by today and then down. Usually first day in a month is green, so expect us to end green today - but over the near term I expect lower prices. Most longer term indicators also points to at least a correction and further market weakness. The VIX also finally broke out huge above the falling wedge , which is the first break in MONTHS.

Have a nice day