Market view

Markets did a nice rally early yesterday on so called QE3 news.... I expect we will get QE3 in the future - but we wont get it before 2. August until they increase the debt ceiling - so no worries that they will be doing this right now.

Markets did just loose nearly all the gains which were made on the day at the end of the day - and closed only up around 0.3%.

If my analysis is right , we should see really panic end of this week ( Thursday and Friday ) and not sure what will come to make us panic - but time will tell us.

VIX ended in the 20's and ready to run higher with all other short ETF's imo.

Markets been flat over the last 2 days literally , usually markets bounces or rallies from MA(50) but this is weak action and I think we plunge below MA(50) and then possible 1295-1300 next. If this level is taken out , then I think we move below MA(200).

Not much to say , patience patience :-) still holding all shorts and cash in hand - I still wanna see some real panic.

If we move lower near term - I would also get a bullish MACD divergence on 60 min chart which is a good signal that a bottom is near - so if we plunge over next few days , thats a time where you maybe wanna take some profits on the shorts - but again I am waiting out until I get a buy signal on markets + sell signals on all short ETF's.

Conclusion: Still holding all my shorts , 1st target is 1295-1300 on SPX - so if we dont break below this major support - then we will possible make a "higher low" before heading higher. If we break it over next days before weekend - then my target is below MA(200) and possible 1230 , so real panic will set in.

Watch those levels.

Have a nice day