I think last week marked the “top” in markets as Dow Jones made new intraday highs and I had hoped for SPX also to make new all time highs this week , but we got a big reversal during the week to downside which is bearish to me.

As this week starts , Monday will be statsitical 2nd WORST day of May….. expect a downward move in markets soon….

So here is my view:

1. SPX topped out with Dow Jones and both about to see a large sell off following NASDAQ and RUT which are already selling off…. Break below MA50 at 1865 will spark a lot of selling on SPX.

2. VIX is very low levels 12-13 and I think VIX is a major buy at those levels now.

3. Statistics and mid term elections argues for a sell off into end of June ,, I fully agree on this.

4. Gold has still a long term bullish golden cross in the making and I still believe Gold will see a huge rally coming months as long GOLD remains above 1270$ bulls has held this zone extremely well…. and I think next leg up has started from 1270$.

Conclusion: All in all – Expect the sell off to gain speed in the coming weeks with statistics is backing up with some bearish weeks ahead here in May. June wont be any better and will just accelerate sell off.

With Ukraine/Russia still on the table , you cant rule out a massive correction.

It is exactly 3 years ago we topped out in May 2011 , this sparked a SHARP sell off from May 2011 highs and the coming months ahead… I think we are seeing another sharp sell off now from May 2014 and coming months ahead.

Gold/Silver will be one of the few things going higher imho.