Market view

Not much to say , Friday we got a nice little trend turn to the downside again with mkts reaching down -1% and closed around half -0.5% lower for the day.

A great day also to hold shorts ,, but in my book the worst has yet to come. I believe that "mid this week" should be the worst and we could see really a lot downside.

If I'm reading the charts right my target still stands at 1140 on SPX ,,, so thats a lot of downside and the pattern I see is still the topping hs pattern with the right shoulder being in.

I dont wanna see SPX to break above MA(200) 1275 and above 1280 (that would not be good, but as long 1280 holds I'm going to hold my shorts TIGHT).

I think we see more Greek AND Italian debt problems comming this week .

The euro also made a REVERSAL on the weekly chart after calling the kiss of death at 142 ,, with euro falling lower , mkts should too.....

Conclusion:

Remain heavy short in the mkts via TVIX, TZA , EDZ , ERY ,, patience pays you off , right now break even on near all plays ,, but waiting for the mkts to drop more from here and rest will be profits :-).
In my book most bearish is mid this week.

See you all in www.nwatrading.com chat room today :-)