3 of the 4 major averages did gap up today, the early trade however will tell us little. Remember, we are watching for a reversal in the broad market.
The assumption yesterday from the 3C charts was that GLD would reverse today, it has done so.
The same is true of USO, although USO's reversal looks more like a typical correction, we'll be watching for the buy/add to opportunity there.
As for a possible short trade shaping up, take a look at ADM. Food inflation is out of control and ADM's EPS/margin may be under a great deal of pressure.
ADM is clearly in a top on the daily
Looking at the moving average crossover screen, we have a confirmed Sell Short signal with all 3 indicators in unison.
The daily 3C chart shows the negative divergence at the top.
The hourly chart is more specific with the top divergence as well as the recent bounce positive divergence.
The 10 min is in a leading negative divergence...
And today on the opening gap, the 15 min chart has gone negative. If the 15 minute chart remains negative today, today should be our reversal day in ADM and by the looks of the 10 min chart, negative pressure should keep building into the 15 min chart.
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