Market view

Markets did another decline which has been even larger than last sessions , which is looking better for the bears. We will get the MACD cross today , so if we are going to have a lower low than 1250 , we really need a good sell off today on Tuesday where the bears needs to show up. If we keep hoovering above 1320 in SPX today , most likely we will see new highs - but if the bears show up on the bearish cross , then we might very well see below the 1250 target.

Small caps were down another -1% which has been moving down a lot last 3 days, good for those who are long TZA where I added when SPX were above 1333.

It looks like our triple and multiple bearish divergences is about to play out in markets as I have indicated some days ago which is usually very bearish.

What was interesting was the VIX was down big with the markets down - which is usually bullish cause no fear , but actually it might be very bearish signal BECAUSE when the VIX is down near -10% and markets not rally up 1-2% on such a big drop in the VIX , then seems like VIX could be about to run up from here and then the markets could be dropping hard. Who knows but according to history as big drop in VIX with markets down is usually VERY bearish markets short term , but bullish longer term...time will tell.

TZA were up near 3% yesterday, so another nice gain, lets see if we get some more upside in TZA today as the SPX is getting a bearish MACD cross. The DOW needs to take out 12.300 to get some follow through down in the markets , so watch that closely.

Looking at euro/usd to see when the dollar will bottom , we might very well be there or VERY close. A long term trendline is near 1.45 on the euro , and I guess we will reach it very soon (currently at 1.444) so lets see last push up in the euro to hit this trendlien and then plunge back down. With ALL the bad news out from EU , does not make any sense at all that euro has been climbing, but technical analysis tells us it want a touch of this trendline before a major drop is comming. At least watch 1.45ish area in the euro...

I wanna point out there IS a possibility that we are forming an inverse HS pattern , if the markets will stop near 1300 SPX and then rally up - time will tell us, but for now I'm still holding short and watching if we get some more bears showing up near term. The short term trend changed from up to down yesterday and gave a sell signal , lets see if we get some follow through to the downside on a possible Terrible Tuesday.


UPDATE INTRADAY :::: FXE the EURO HITTING RESISTANCE , MIGHT BE MAJOR TOP IN THE EURO HERE
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