There was not much to say about yesterday , pretty much flat and a boring day with no changes to the analysis - that a big move to the downside should be comming and a breakdown. We are still in the rising bearish wedge with more than a triple bearish MACD divergence , which indicates that this rally is "overdone". But again - who knows if they are going to run the markets to SPX 1420 or so ? - Well in that case I am going to take my loss on shorts at 1340-1344 if we move to new highs , cause I wont be on the long side if we do that.
But all in all , volume light and many bearish divergences, what to come ?
Overall daily chart on VIX looks bullish here more than bearish and the SPX chart looks very bearish at the moment.
We have this weeks biggest event in EU with a rate hike on Thursday - its already priced in , do they have more rate hikes in pipeline or what ? If not - EU will sell off imho and USD will rally.
Also on Friday we have something BIG event with DEBT , as in US they must find something to raise the debt limit.
Overall there were some big fat buyers in the SPY put volume on Monday - so I dont know if the big boys know something we dont know ? Time will tell - but may come some very interesting things over the next 1-2 weeks.
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