As mentioned last week I expected a top in the US markets as we hit 1810-1815 which was our short term upside targets.

Since then markets has been now forming some bearish topping patterns and this is one of the reasons why I think we are going to have a further correction.

This week we get FOMC on Wednesday and all in all – I would be looking for a move down to 1740-1750 sometimes this week – after a test of this support I would expect a rally/bounce before we see next big drop.

We need some panic selling down to 1740-1750 before we can get a better rally/bounce, markets needs to get more oversold than where it is now.

I’m still extremely bullish on Gold long term think we made a higher low than the 1180 before we see a great rally into 2014.

Japan looks likely topping out too , I’ve been bearish on Japan but as we broke out the old triangle to upside we rallied higher , however we have NOT gone past the 2013 highs of 16.000 which is likely to be a longer term top.

Conclusion: Still think we are in a correction which could take us a lot lower in the coming months. So as long we remain below 1814 dont expect much higher prices near term.