Markets has seen one of the largest correction so far for 2014 and this was also as I wideley expected. The move on SPX target was around 1900 level to 1930 level and we got into this zone. I believe very likely mkts bottomed and should see another rally higher to new all time highs as long we hold the 1900 support level.

NYSI extremely oversold and suggest a big move up in equities in the near term , should have a lot room to run here.

VIX looking for a move down to around 11-12 level before we see a bottom in fear index, this fits well with mkts to rally from here short term.

Gold should be in a huge breakout rally from here into mid September , looking for a strong rally as long we hold 1280 ,, if we break below 1280 gold looks more ugly, but for now I still believe a large rally coming in gold/silver.

Conclusion: Expect mkts to have bottomed at 1905 and a large rally to new all time highs is expected. VIX should see a move down to lower trendline around 11-12 before the next large rally higher on VIX.