I believe that the correction ended at 1560 from the highs , as I mentioned in last report and for members – I mentioned that it was VERY likely that markets were close to a bottom when we hit 1560 level. Again it turns out we had one of the fastests 3 day rallies since January which also suggest that this rally is quite strong.

SPX have made a typical A,B,C correction where the C was the strongest move down as I called for , one big reversal and flush down below 1600 as we took out MA50 on daily chart.

So right now my view is that we are going to make new highs but short term is overbought , which means a better pullback should occur soon , but after this pullback it should only be a good pullback before another sharp rally higher. I believe we will make new highs by late July or early August.

What was interesting was Gold making a big reversal candlestick on Friday from 1200$ level as I mentioend was good support. I believe that gold/silver might have made a bottom for rest of this year and therefore miners is very good looking. They went up hard on Friday as the quarterly options expired 28th June, so people loaded up cheap as the new ones comes into the picture.

NYMO forecasted the rally should start and that was what I pointed out last time.

So all in all , I will be playing small caps in the near term as I dont see much downside in mkts in coming month.