As I had mentioned in my weekend report, the trend / bias for the stock markets for the coming week is down. We had a severe sell off today. The talking heads are saying that the sell-off is due to fear about Italy. I think it is all part of manipulation. I strongly believe that the price action moves news. News does not move the price. The major players knew two weeks back that there is problem in Italy and they were selling the shares of Italian Banks heavily while pumping the US stock markets.
I expect the sell off to continue this week and ultimately we shall have the panic situation (VXO reach high 20s) that I have been talking about for a long time. I expect to see a lower low, below 200DMA before we see any bounce.