Market view

Markets did a good sell off on some credit news of US yesterday - but markets did not sell off heavy as most of the selling pressure were on the gap down.

So did I cover my longs or what ? - No I actually added to my long positions at 1295-1296 level as I saw it holded very well today and now we just have an even BETTER inverse HS pattern than before.

Okay the left shoulders bottom were 1294-1295 and yesterdays bottom were 1295 perfectly. Look at the horizontal line , completley perfect touch , and a very nice rally or bounce after this touch. We made a hammer formation on daily charts on most indexes which is usually bullish. But if we move to below 1290 and lower I will most likely just take my longs of the table - but as I see it right now I think we have a good possibility to take out new highs by early May or end of April....

We will see how markets acts near term , as the short term trend is still down you gotta be careful doing the opposite , but SOMETIMES you need to take risks too to make big money and thats why I bought longs at 1295-1296 or "added" and then have a stop if we move below 1290 or so and watch markets. But until now we may very well have bottomed.

As I stated last week the dollar had HUGE OPEN INTEREST in calls , which is BULLISH.

The dollar is rallying very good with volume , that is the ONLY thing which worries me. FXE did hit my big trendline and stopped and moved down and the US looks like rally - thats not good for markets if the US dollar is rallying. So there is a good possibility I will stop out of my longs , but until then time will tell. This is just how I see it right now and I think it looks like a perfect INVERSE HS pattern.

Looking at IWM small caps they are back to the huge support trendline since September lows - if we BREAK BELOW this level , may get ugly , but if we bounce here thats a target for new highs comming, time will tell us near term but watch it...

The target of the pattern IF playing out would be in the 1360-1380 range, lets see whats comming next.

Have a nice day