Expect all the major indicies to break the downtrend tomorrow with higher highs than last seen on May 29th. For example, DOW 12,600 was reached on May 29th, should be easily breached on Monday. DOW 12,050 was the low made on June 4th. Expect the market to head back down starting Tuesday or Wednesday. According to Trycure's Fed Injection Schedule, the Fed is injecting over $5 Billion on June 13th. Worst case scenario is the DOW revisits 12,300 by this Friday ahead of next weekend's crucial Greece vote. Once these higher highs and higher lows are established, then it's very likely the market takes off to the moon!
VIX Longs should have one last chance this week to make or salvage a gain. The trade would be to buy the VXX/TVIX/UVXY on the lows at the beginning of this week and then cashout on the highs by Friday. It may not be a good idea to go long into next weekend. If you already went long this past weekend you may as well wait the rest of this week to cash out. The stock market has one more dip/leg down, but not enough to breach the June 4th lows. The bottom of this latest market correction was made on June 4th!
I think I've said this a dozen times already since the beginning of the year: The DOW is going to 5,000 by the year 2015! The S&P is going to 500. I already see the big picture and am aware we have been in a bear market for the past 12 years and counting. But the charts also tell me that in the short-term, there's still more upside to come, the capitulation top is yet to come: DOW 14,000 and S&P 1,500 by the end of the year!
Market made a lower high in late April followed by a lower low in May, so this rally needs to make it above the late April highs, above 1406, for the uptrend to resume. If it fails to make a higher high, then expect a lower low, below 1278...