Market view

Markets did another consolidation day today imho and looking very good for another major breakout higher in the markets near term.

I expect the markets to reach SPY 124 based on a pattern I see (inverted hs pattern) which targest near the 124 area.

Markets testing the 1180 support in futures which is looking very good as we will form the right shoulder in this pattern before the major move higher to near 124. I expect the markets to rally further up.

TBT also looks extreme good short term and expecting a major move to the upside in TBT , and good move down in TLT.

The most interesting part is the euro , which made a bullish harami candlestick yesterday and the dollar which made a bearish harami.

This tells me that the euro is about to breakout higher to the upside soon.

Conclusion:

Markets made a huge move on Monday and had a consolidation day yesterday , holding up very strong imho and ended flat/green.

After this consolidation day I expect markets to make another major breakout higher to reach 124 possible on Wednesday or Thursday time will tell. TBT looks like a major move is comming , I dont know which news will come , but some kind of news telling me that euro might go up big soon.

I stay long and strong lots of good looking small caps + TNA/EDC.