The rally today did surprise me a bit. I was looking for more of a corrective move upward over this last week. The sharpness of this rally makes it look more like a wave C (end of the correction) rather than a wave A (beginning of the correction). If it is a wave C, it will mark the end of the sideways correction that started back in early August. It would also mean that we could see a triple digit S&P 500 index by the end of the year. The price action and volume today suggest that the market could reverse in the next day or two. There are some really good reward to risk bearish trades setting up. SLV, GLD, WYNN, GMCR, SINA, AAPL, LULU, SOHU, CF, PCLN, and FOSL. I also love the reward to risk right here on FAZ and TZA for call option trades. JPM reports earnings before the open tomorrow. We'll see what affect it has on the market movement. The VIX is sitting at a key support level around $31. I'd like to see the VIX start to spike up and the Dow Transports start to sell off. This would confirm a bearish trend.
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Stock Market seems to me the most overbought since at least one year, 5% + rise within a week in extremely low volumes looks bearish to me , i am thinking to short the market and buy Put in the next day or two , EUR may rise a bit higher but not much 1.39 /1.4 Max
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