The Key to a Strong consolidation in the market definitely needs the USD change its momentum and trend in the medium term. I believe this is nearing as it is hovering around the support i mentioned previously and I have identified A really support line at 81.25 which reversal should be imminent if it touches that line.

I took a Nasdaq short yesterday although I already saw the strength of the S&P 500 to move up higher which of course will propel the Nasdaq higher. This is taken based on a longer term view which I really do not want to miss the big move down if my short term views are not in sync.

Another gd element to fuel the potential fall in the market would be a resistance Apple would find it hard to penetrate at this junction. Strong confluence over that area and it should fall even if it reaches there. Being such a large market capitalized stock...it might be a gd indicator as well in terms of a clue to the potential consolidation.

The Bonds has kind of broken down in terms of its correlation but the support and strength around here shows the chance to move up strongly to cover the gaps. How many it will cover we wouldnt exactly know for sure...but a strong move up might bring the correlation back in action again.

You could visit my blog at http://sibeiho.wordpress.com/ and you will find the realtime trades and charts before it happens. I dun have a crystal ball neither am I saying I am the market oracle…but Iam taking positions based on the odds of events that is happening right now. Given the dynamics and movements of the different asset classes currently, one thing for sure this US market is heading towards its bear market sooner rather than later.

The blog is an experiment of initial funds of $3000. If you do have time do visit the blog and see how far this sum of money can be stretched.

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