Markets did had a quite good week after the worst week of 2013 in the previous week. We saw some nice gains in mkts early this week as called and then we started to reverse down again end of the week.

We are now getting closer to May and we all know the “sell in may and go away” – will it be another time where we sell off hard in May ?

I’m going to show you a chart for past years and how mkts performed in May.

I’m seeing topping pattern formed on all indexes and bottom patterns in fear index. This give me a pretty clear picture that a top is made and a sell off is likely in the next weeks.

I think as long we stay below 1597 on SPX – then we topped out and the next sell off should occur very soon, so I’m staying on the short side as of Wednesday this week where I loaded up on shorts.