Markets is now entering the most bearish period in time and phase from now until 19th July. I’m thinking markets could see a very nasty sell off from current levels and according to the long term charts on global markets it fits very well. Spanish yields above 7% which is also critical and all numbers looks very ugly indeed.

We havent got any LTRO 3 or QE3 , so right now mkts dont have any very good reasons either to rally higher.

We called the bottom at 1260s on SPX and said a rally might occur , and since then we got a nice rally to 1375 on SPX. I believe that the rally is done and a new big sell off coming , potentially targets 1200 on next leg down.

USD looks ready to spike even higher again after it got a little retracement/pullback and looking ready for new highs in 2012.

So all in all, be prepared for a possible extreme nasty sell off to start this coming week and DONT EXPECT ANY KIND OF BOUNCES IMO. People is going to try to buy for dips but I dont think we will get much of any bounces. I’m staying 100% short and thinking that a nasty sell off is underway until 17-20th July.