Markets had a big rebound from early this week as we called in the chat ,, that a market bounce were due ,, and so far we have got up more than I have expected – as I only expected a move to 1290-1310 area ,, but we came a little further.

The main plan remains the same ,, I believe that this is just a re-bound before we are going to see a massive sell off starting – the question remains still if we go a little higher before start dropping hard?

To make it clear you dont wanna try to get long markets right above a 3 year long neckline ,, as this should breakdown and WHEN it breaks ,, we will see a massive crash coming ,, with many days of down days without any bounces. To me ,, this week reminds me a lot like late July 2011 where markets rallied hard,, before 2-3 weeks later,, to crash hard down in August 2011.

Per my view ,, we will very soon turn around to downside anytime now — we MIGHT still have some more upside to go ,, but I dont think we go much higher before turning down south ,, and next time it will turn out ugly.

As I’ve mentioned last months I expect June 2012 and July 2012 to be some of the worst months for this year and a potential crash might occur in the global markets like 2007-2009 period. I think the mkts could get a lot worse after Greek elections this coming weekend and into end of month where we could see MAJOR panic occur in the markets.

But I must remind you now ,, that the trend is up and bulls is so far in charge for now ,, as long SPX holds above 1307 bulls is in control ,, but if we LOOSE 1307 bears will take 100% control and thats when we are going to see a major problem as people soon will start to PANIC sell.

Right now is a time where I would not try to “catch” for a little upside when all my charts pointing to a possible major sell off/crash in these months ,, I rather stay short now and hold. I wont rule out we take out October 2011 lows sometimes here in June or July month 2012 ,, sounds very unreal – but if we get what I see on the longer term charts,, its going to be nasty these months.

So far we nailed nearly EVERY move up and down lately and so far the EU markets and US markets have made a MAJOR top in 2012 in March as we said ,,, “Markets to make a 1-3 year top in the March month” and so far ,, all world markets has made the top so far there,, and I still believe it will be a major top and we wont reach that level again next years.