Markets still holding up strong – a bit stronger than I expected this past week. However markets are still below the all time highs.

1. COMPQ wont make new all time highs, we are bouncing up in a corrective fashion in techs and I think another sharp sell off coming into summer 2014.

2. DOW Jones making a top formation , right shoulder and should NOT make a new high , also expect Dow Jones to move down this week in a sharply manner.

3. Gold looks like a big move up or down coming. I still believe the triangle will break upwards on Gold , but if Gold sees below 1270-1280 that would be bearish. Until then I remain BULLISH Gold/Silver and hopefully this is the week where we could see a breakout. Very boring range in Gold and not much happening lately.

4. VIX is yearly lows at 11s I think its very hard to see VIX going lower , but its always possible , but the odds are NOT good for VIX going lower, before VIX going sharply higher.

5. Transports hit 8000 mark and we should top here in transports and make a major top. We might see a little above , but should hold around 8000ish mark.

Conclusion: All in all , I think markets topped out early/mid May and for now just seeing a contra trend rebound. So this week should be a week where markets needs to breakdown further. Its a short week, but would be nice to see a sharp sell off going into weekend and month end.