Markets did not reverse yesterday as I expected - but I'm still expecting a reversal to happend, maybe today or next days before weekend. Overall you just CANT deny that the short term trend is up and until we see weakness - its safe enough to be long. We will get a daily SELL signal in our systems if SPX breaks below 1291 SPX ( so a move below that is the trigger for you to load up on shorts ) cause the short term trend will reverse from up to down at this level. EVERYTHING above 1291 right now points to markets moving higher and we could see 1310-1320 before getting the correction. There is lots of signs I have showing that the reversal will first happend mid February end February, but again if we get the correction earlier - then watch out. The GAME plan for you is to stay long markets as long as we are above 1291 SPX, until then good to play breakout stocks and take a few profits. I think its VERY dangerous to buy and hold for weeks and months now, NO GO....
The dollar looks like bottomed from a wave 2 down - before a BIG wave 3 up rally comming in the dollar. That is in line with a nice correction which should happend when the dollar rallies up, so I'm very bullish the dollar right now, and have been since the bottom in november 2010. Dollar will go higher near term and a big rally is underway and it will happend very soon imho.
But overall short term trend is up and 1291 is to watch for today on the downside, to be more specific looks like we could get last push up to 1310-1320 area before a big reversal, time will tell...
Have a nice day
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