Market view

Markets did end near highs of the day friday and we are currently right near a big pivot point resistance at 1313 SPX. Lots of people are thinking that 1313 is a top - and that could fuel markets higher, but again sooner or later we gotta plunge down. A correction is still imminent and the move up looks very weak and seems like markets need some new buyers, other than the FED. Our mechanical model is still on a buy signal and wont get to sell signal before markets dropping below 1297.

Russels seems still like trading in a HS topping pattern with right shoulder bein in - if Russels dosent go higher monday , that would indicate a big fat drop comming early next week. This move up since 2009 low - could also be counted as one big fat triangle where we are getting VERY close to an end....if so markets could still og higher to near 12.500 dow jones - but time will tell. Until now mechanical model is still on buy signal and wont trigger a sell signal before markets getting down below 1297. If you see markets going down monday under SPX 1297 - thats your very first and early sign to short all you can and get out of your longs. Until then I would say still safe to be long.

Notice from March 2009 the volume has been decreasing all the way up through this rally telling that there is not much left before a big drop is comming. I dont know if this is a major top before markets going to new lows - but what I think is a correction is comming to 1180-1220 would be great before moving higher.

Time will tell , lets try to keep it simple and not try guess so much, cause in reality nobody knows where we are heading. The short term trend remains up until SPX 1297 is broke. Until then we might go to 1350 - who knows. The most important is just to follow the short term trend to stay on the right side of the markets.

Have a nice day !