Markets still grinding higher on low volume and the short term trend is still up. Thats why I am telling that there is no reason to get heavy short before you see a confirmation for a new downtrend to take place. How I feel is that there is nothing out there which can get the markets down, good economic data we go up, bad economic date we go up, riots in Egypt and war Middle east and we go up, eurozone problems and we go up, weaker GDP data and we go up, all charts and divergences and alle sentiment indexes telling that we should go down - but we still go up. I am looking forward WHEN we drop to see what the reason will be for this need to be an atomic war or someone boming FED. But we need to play with the market and the market is telling us that we go up.
The level to watch for today is SPX 1323-1325 area , IF we break down below this area thats the time you wanna short - until then the trend remains up and no reason to short. However the VIX again looks like its going to make breakout today and as I have been saying before I am expecting a correction to start by mid February which is... NOW...
Have a nice day
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