Not much changed ,, markets made another gap up higher and ran up to test the MA200 this time , which we did not do on Friday - also we tested a major trendline resistance and then got a good reversal intraday from this ,, very good signs for bears imo.
The VIX also looks VERY good to me and I think the VIX will go higher near term with the markets lower ,, so I stay long EDZ , TZA quite break even right now , but still looking for SPX to at least test 1220 ,, before a possible new high comming. So lets see this week...
My thesis is that this weekend people will get VERY dissapointed by the EU summit - and I believe markets could get a shock from it, as investors just want EU to print its way out - but I dont believe that is what they are going to do - so be prepared for a potential great sell off if this happends...
Conclusion:
VIX tested MA200 and bouncing from there - I believe VIX is moving higher near term and markets lower ,therefore staying long TZA EDZ. SPX near term target is 1220 area.
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