Market view

Markets did a little gap down and went down near -1% for the day and then got a nice spike up higher end of day on rumours that Japan lended IMF 600B$ ,, bullshit rumours and typical corruptions rumours someone imo laying out so people cover just before MAJOR eu summit meetings....

I guess most shorts covered on the major move up intraday yesterday and got stopped out , but either way I'm following my signals here and they are still telling me to SHORT this market and not buy it.

Take a look at the VIX , outperforming the markets to the upside over the last 3 days ,, fear has been slowly and steady increasing with the markets moving sideways.

1. VIX needs to dump hard in case we should get a big rally , for now looks like VIX is moving higher near term and therefore markets should move down.

2. As long SPX is below 1265 we are STILL below major resistance -- but if we get above 1265 and as confirmation above 1270,, well then we might run some higher near term and that would be a signal to cover your shourts - but until then all signals remains on sell signal for now.

TVIX ran up pretty nicely and ended up near 5-6% yesterday in gains ,, up huge on this trade from 40$ already - so hopefully there is more in it.

TZA is a breakeven trade currently and EDZ in small profits.

Conclusion:

Holding all my TVIX , EDZ , TZA and if SPX breaks above 1270 I most likely going to be stopped out of shorts. EITHER we are having a CONSOLIDATION last days before breakout OR we are forming a TOPPING pattern - so far now keep your tight stops ,, if we rally we gonna see 1292 fast imo - but if we go down ,, hold on to shorts.