The 5 min is what gives me a little more confidence in my opinion.
Because breadth deteriorated so badly during the divergence, but price didn't move down much, however, distribution on the 1/5 min charts did, it's my opinion that today was used for short selling into some strength. Earnings I think have disappointed beyond expectations and we haven't even gotten into the heart of companies that face margin squeezes like manufacturers, retailers, etc.
While we're just negative up until the 5 min chart, the breadth charts deteriorating and how rapidly they did so, suggests to me that there was a target zone that the market needed to be lifted to, that's where they wanted to put on shorts and the deterioration in breadth would suggest that they did so pretty quickly.
If there are shorts or inverse ETFs that I've mentioned that you like, this may be your chance to pick them up with less risk. Feel free to email me about any equities you might be considering. For broad coverage, I do like TZA and BGZ, but I wouldn't have two ETFs represent my portfolio, although they can play a part, especially when you want quick coverage that is broad based.
I would also consider easing into any positions, we have a weekend here and Monday's tend to be the best performing day of the week, not that I'm seeing indications of that.
Also any earnings plays that report after hours or pre-market that you may be interested in , let me know and I'll take a look. I have about 150 stocks in a watchlist, I'm going to spend a good part of the weekend weeding through them looking for the best set ups.
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