Market view

Overall markets did reach the 1365 and then got a pretty nice pullback into close and ended near red, especially Nasdaq.

I did add to my short position and TZA right near the close and when SPX were trading near 1365. My view right now is that a pullback is about to happend - the "Sell in may and go away" news should come with the pullback and I expect weakness in first part of May - to an objective target of 1325-1330 area. My timing fibs tells me we could see this level in the first part of May and then a big rally should occur after this to new highs.

The SPX and all indexes is trading in a very bearish rising wedge and just broke below the rising wedge end of day on Friday which is a very bearish sign imo.

The dollar is imo near a bottom I dont know if its a short term bottom or longer term bottom - but EUO chart had a BULLISH ENGULFING candle on Friday which is BEARISH for the Euro - and BULLISH for the dollar. So for now looks very bullish for the dollar - I think there are 1% bulls in USD now and 99% bears.

I've nailed the rally and went long SPX 1295 and took most profits on longs when we reached 1350 - then got into shorts and added to my position in shorts on Friday near 1365.

Looking at the 30 min and 60 min chart we are very overbought and have been this for some days now - the question is if we will continue to grind up on this low volume like we saw ? There is a possibility , but I still expect a minor pullback before.

Looking at TZA we have a triple bullish divergence on MACD on the 30 min chart - this is very bullish and most likely a good move to the upside is near (Why I bought just below 32 on Friday)

As for the silver I hope you enjoyed the shorts since my top call from 50$ in SILVER - which has been plunging down 10$ to 40 bucks!! BIG profits to be made if you got my top call for the blow out top in this blog ! I now think the silver is due for a bounce and I would cover all shorts at 40.

Not sure if we start the pullback on Monday - but I think we will begin correcting very soon and I think we will start this week.
Have a nice day !