Watch for a fakeout in SPX. Time to short again Aug/13/2012?

Watchout for a fake run up followed by a close like this (img below) to capture more pigs. High chances that this occurs just a few days before options expiration. I am looking for tue/wed for a reversal. Looking to get into a put spread going into 1380 for coming weeks.

SPX candle possibility going into tue/wed

VIX showing high levels of complacency?

Last time we saw VIX this low was in mid march after which markets started to wobble a bit and we got a nice correction. RUT and BANK index starting to show some weakness in images below.

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Cover your shorts Aug/02/2012 ?

Markets made a good move to the downside from our alert few days back LINK. This may be a time to cover shorts and take profits or to atleast cover some shorts. I covered a few shorts, mainly indices and went long into tomorrow at close today to hedge myself. These are the positions I will be closing during the day tomorrow or might keep until next week. I do believe there are chances that the markets will fall soon, but it just needs to breathe first. High TRIN reading of 2.19 suggests a possibility of short term bounce too.

SPX daily chart

*Please do your own research before buying any stock listed here. Disclaimer.
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