Markets so far kept going down all the week – without any kind of bounces ,, bears were in 100% full control and we stayed with our shorts. By the end of the week – we expected a coming market rally ,, so we began to switch to the bull side as different indicators show that we are “extreme” oversold in the very short term.

Overall – so far I expect a short term bounce / rally ,, how far to the upside we go ,, I dont know.

However I think we wont take out new highs ,, and that the highs is in. All EU markets and Asian markets topped out in March 2012 as I called to be a “major 1-3 year” high ,, I still think this is the high and that we will only get a fast and violent relief rally to upside before we crash lower of the coming crash 2012. It should be coming in the summer months June/July — its very hard to say exactly WHEN ,, but I think we will see a very hard crash coming this year by this summer 2012.

So far bears is still 100% in control , but if SPX manage to take out 1312 to the upside ,, bulls will be in “control” very short term.

I predicted a flush when we were at 1400-1415 that we would see 1290-1300 , and so far we got EXACTLY to this area ,, congrats if you all took shorts up cheap in the range 1400-1415 !

As we hit the target to downside I went long on Friday before close at 1293 (via TNA) , so right now I’m most heavy positioned to the long side short term. But remember — the bear is NOT over imo ,, as the next sell off will be the “crash of 2012” imo , and should start sometimes in June and last through July. But until then we will also play the short term upside to make some gains there.

See you all in room , I’m back from Norway and ready to to intraday daytrading with TNA/TZA in chat room.

Excellent weeks so far !

Chris