Over the past weeks I have made it very clear that I believe markets were close to topping out and I saw majoar bearish signals. It looks now to me like CORRECTION has now begun also noted that price/action intraday in markets had a bearish behaviour suggesting its “sell the pops” instead of buy the dips mode near term.

If i’m wrong bulls need to take it above 1709 , but I believe that was the top in markets near term.

1. Statistics for August + September is not good for stocks. Usually these are the most bearish months of the year and support my view for a major top.

2. Weekly + daily chart bearish divergences on SPX does not bode well for markets intermediate term….

3. We got bearish sell signals both on NYMO, NASI, SPX.

4. VIX fear levels at very low levels and showing a bottom formation. Looks likely a big rise in VIX underway from here.

5. US dollar support my view that a major rally in USD with RISK OFF in markets looks likely.

6. We got some fundamental things to worry about near term. Especially in SEPTEMBER with German elections + Possible “Tapering” and a US budget debt debate could occur…

All in all – bulls really need to make a bold move if they want higher , but right now I believe that we topped and a correction has now begun. Expect the correction to take out the previous 1560 lows from here. I took my bear suit on this week from being a bull past months from 1560 lows.