The bear may have begun

SPX may have topped at 1039, close to the pivot 1041.

It is now trading at 1000, lets watch if it can maintain support at 990 level. If it doesnt and the wave looks strong and impulsive, this increases the possibility that the bear has resumed.

VIX on the other hand, has maintained a bullish momentum and broken out of its descending wedge. This is very bullish, especially with a positive divergence and RSI. Of important interest, is that the divergence has been forming since October. Its been building a 1 year base. And because of this, I have been mainting a bearish outlook on the markets and do not believe in the recovery story painted by the media.

As noted by Atilla in his blog, some giant options player has betted on a bloody November. Call options at VIX 40 is being bought. This means some very very huge player is betting a volatile market then.

China is now back in a bear market status. The other markets should start to peak and roll over.