Market view

As expected we got a reversal and inside bar yesterday with a very nice gap up and then down all day long into close and closed in RED !

No big surprises and I remain still short markets for the comming pullback which I expect should last over the next 2 weeks or so until mid May.

There are many signs that shows more pullback to come.

1. The TZA (3x bear ETF small caps) made a BULLISH engulfing - with this the small caps made a bearish engulfing which is really bearish - I've got loade up a lot TZA in the 32 and below which closed at 33.19 which is a really good start for me. I remain long TZA and think a possible minor gap up today after with a pullback before going higher later this week.

Overall the dollar seems to make some kind of bottom - I'm not sure if its a longer term bottom or a short term bottom , but either way it looks BULLISH right now with the hammer candle formation and bouncing from trendline drawn.

The short term target this week in TZA is a test of 36 or so and if we break that big trendline we may see 42-43 next, but I am watching closely here.

The objective target in SPX is still 1325-1330 and that has not changed , I think it will be a corrective choppy pullback over the next 1-2 weeks down , with both up and down swings but overall trend down to make lower highs and lower lows.

Russels may see the support of trendline around 830-835 before bottoming for another rally higher (currently 854).

If SMH(Semiconductors and small caps) is any leading indexes for overall markets - you should watch out for some weakness as they were both down more than 1% yesterday !! Thats why I bought TZA in the 32 and below and already up 3-4% on them. Time will tell what to happend but if the dollar shows strength near term as I expect - then the markets is likely to get down more.

Have a nice day