Monday, November 23, 2009 it will be choppy...

We painted a bull flag on SPY today. So I would expect another up day tomorrow. But this week is a short week and there are 2.5 trading days left. SPY looked like it made an intraday new high but its debatable whether its a bad data point or not.
Tomorrow GDP is released, the previous GDP was 3.5 and there are rumors of a significant reduction to that number. This is followed by consumer confidence at 10am. Wednesday brings employment situation, consumer sentiment, durable goods, and personal income and outlays prior to turkey day. My expectation for down next Monday was based on the fact that this is a light trading week and its usually choppy around holidays, so the movement today was unexpected.
VIX jumped out of its bullish falling wedge...There might be a retest before it continues up.
Bonds fell out of their bearish rising wedge. In fact, gapped down huge and barely filled the gap. There might be a retest of the lower wedge line.

While I expect a new high in the near future. I think a SIGNIFICANT correction will happen soon. While there might be some upside tomorrow, I expect it to turn real soon.

PS...going massively short this week.
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