Market Diary

SPX Range is in 1345-1255. Now SPX trading middle of the range.  Good support to buy equity is 1260-1270 area of SPX. Expecting more choppy action until then.

1300 could good support for SPX, There will be choppy action in or around 1300. VIX could pullback towards 19-20 level NYMO is in -100 level. In this level NYMO used to reverse, means market could reverse or chop around

A Cup and Handle formation in long term 30 yr Bond. Bond re tested and confirmed that break out is solid and ready to go up. Bond market confirmed today with new high. What that means to equity market.. Equity market is inversely  proportional  to the bond market. If bond market is going up, then equity market will go down and Dollar will go up. The other interesting incident is bond market is higher than 2009 March high. !! That means right now, investor confidence is lower than  March 2009. Most of the  money flows towards bond market. My expectation is market will go down until October 2012 with slight UP movement in mid of  June to July.

Possible ranges are 1400-1350 , if market break 1350,  S&P could free fall 20 points to 1330-1300 range.