Markets did a minor and very weak bounce yesterday , near flat/up after heavy selling pressure tuesday. We are still sitting right at the big fat trendline since September rally started - and when we break down from here this is going to get very ugly, panic will occur and heavy selling with big impulsive moves down would come.
It can happend anytime from now - and still expect a move below the low 1294 we had to make a lower low.
Looking at the dollar from monthly chart from all time lows - we are getting close to the ultimate lows before hitting trendline.
Well in this zone there should come up a lot buyers in the dollar - but the ultimate touch of trendline if I drawed it precise is 76.3 area and we are now at 76.6's. So currently we could have minor minor downside in dollar - before a huge rally underway to 87ish all IMO.
The short term trend is still down and we are still very bearish markets now and holding all shorts from 1333-1330. To make us bullish again we need a push above 1321 - but UNTIL then we remain very bearish and everything below 1321 is BEARISH.
Our sell signals on the 22th Feb remains intact and therefore if we bounce - it should be shortable.
Taking a look at VXX - FAZ and other ETF's clearly , BIG and SMART money already loaded at the bottom - vs dumb money going long markets and buying every dip until they get stuck this time....volume tells it all.
All in all - expect a move lower very soon with the dollar going to rally and we should break below the big trendline and when we do - you should expect HEAVY selling pressure.
There are LOTS of risks in the future - take a look at the picture of risks...
Target still below 1200 for this month
Have a nice day
No comments:
Post a Comment