Markets started out a bit boring still moving sideways , a lot of people thought markets would never go down and I still stated that the correction has begun. I saw a very bearish top head and shoulders pattern and finally we broke 1680 overnight and started to sell off hard.

Currently I believe we are still in a big correction going into FOMC meeting in September possible – so we just started.

Very short term markets might be due for a good bounce – just not sure if we sell off further before the rebound.

SPX broke BELOW MA50 and closed below this Friday , this is normally bearish and suggest we might see more downside early next week before a rebound.

We got some good support zones between 1620 and 1635 on SPX – so if we get down there I would expect a healthy little bounce.

NYMO showing some signs that markets short term is very oversold , if NYMO gets a bit lower we should see a nice rebound I believe.

CONCLUSION: All in all – expect a short term rebound if we go any lower ,, the correction has begun as called past weeks and I believe that we just started a big one. Expect below 1560 June lows sometimes in the coming months.