As expected markets bounced a bit early in the morning , but the bounce/rally were very weak. I expect a possible gap up today and then we should start by plunging further down today to close this week with a bearish engulfing candle on the weekly chart. Overall markets were mixed yesterday and SPX is right near support - but other indexes already below supports - I expect the SPX to follow to the downside soon.
The numbers to watch for is SPX 1326 if we move above this level that would be a good buy signal - but EVERYTHING below this level is a strong sell and markets should continue to move down. So IF we get a rally today the top should be around 1320-1326 maximum and that should be another shorting opportunity.
I dont know if we are going to get that high but overall looking for next leg down here soon.
I'm still heavy short 1333-1330 area with my mechanical swing trading model and holding until markets proves otherwise.
I expect we will see 1180 sometimes March/April and I think we are going to see more in Mideast and with Saudi Arabia by early/mid March. US debt ceiling date is March 4 , lets see what they will find out....
This is an early alert - but the dollar is about to have a MAJOR MAJOR rally to the upside here soon. I expect the dollar to reach 87 in next months and a big reversal to the upside is comming - so imo get long the dollar. I'm still long since bottom in November and holding long dollar.
Have a nice day
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