Market view

Cautious ! This is what I can say at the moment. We are in a time where there could be a big trend change and mkts could end up getting quite nasty - or mkts could keep going up in a massive rally soon. So what is to come ?

I wanna try to look at both sides of the trade and tell you my personal view of both POSITIVE and NEGATIVE things about the markets currently.

Positive: The BULLISH signs for the markets now is that

1. Many people turning bearish at the moment - giving more fuel to the fire to move up......
2. We still have POMO all the way to June.....
3. We are still in a period per astrology signs that more upside is comming until June (PER MOONS and CYCLES ) we have an eclipse new moon 1st June which may change everything by market psychology
4. We have a so called INVERSE head and shoulders pattern formed on SPY - Dow jones - usually tracking dow jones works better and if the inverse HS pattern holds true - we broke out of neckline and should backtest it at 12.475-12.500 range. IF THIS LINE HOLDS - major rally may come... if not - BEARISH.

Negative: The negative things is that if I am looking at the WEEKLY charts on IWM and TZA - it tells me that a monster breakout may be in the making with TZA (looks like about to break downtrend). TZA made a bullish engulfing pattern on the weekly charts which is pretty bullish I must say - but as you see TZA been plunging too with oversold levels for HALF A YEAR - so no reason that we can stay in this range longer..... but just some thoughts...

The OEX put/ratio is tooo damn ugly right now - previous times this high... were in 2007.

Another bearish sign for the markets is the dollar. Well the dollar is right now at MA(50) but the weekly chart suggest it may go way higher and possible start of a new trend up...

Time will tell its hard to say - but if its the beginning of a new trend up for the dollar - then the markets is going to trend DOWN.... which is bearish for stocks.

So the WEEKLY chart for the dollar looks quite bullish I must say. So overall the most bearish signs for markets is imo that the weekly chart looks great on dollar and TZA...

So overall quite neutral right now - mkts may hit dow jones neckline at 12.475-12.500 and as called yesterday a PULLBACK were DUE and we got it yesterday....... Now it would look most perfect if the dow could touch this neckline and then bounce hard of here to reach 13.000 next.

If dow jones breaks below this neckline I am going to say that the bears have the ball and it could turn out very ugly...... all imho

So right now SPX may still have to touch a trendline near 1327-1330 currently - if this does not hold - bearish imo.... if we hold above then we may see 1380-1400 next.

All in all keep a close watch on the markets near term....

Have a nice day