Market view

Markets been moving up slowly the last week everyday with anemic volume with the FED underlying the bid. We are now in the week of mid February where my time analysis tells me that a reversal should take place. We have full moon 18th February and there is a lot of economic data starting from tomorrow (Tuesday). Today markets may just be sideways cause no ecnonomic data and it should be a quiet trading day, but I think the correction should begin sometimes this week as we are now in the time zone mid February.

As stated before - the trend is still up and will REMAIN to be up until the trend changes. So there is really no reason to get a lot bearish before you get the bearish signals in markets, although its imminent that we get a so called flash crash II or heavy selling. I expect the markets will discuss a lot with the debt ceiling this week and the likelyhood of a US default. These events could trigger a massive sell off ( debt )...

Overall other markets like India has been crashing down lately but the US markets is just pushing higher. Looking at the longer term view we are in the end of a long term bearish rising wedge and I expect us to break down below this sometimes this week.

But until SPX 1313-1314 is broken , the trend REMAINS up and the first signal you will get is a push below 1313-1314. This will give us a sell signal in the markets and a short signal, but until then markets may be pushing to 1333(2 x 666 hmm ??).

Have a nice week