Wednesday, July 11, 2012

Initial Reaction

It will take a little more time to see other timeframes react and any trends develop, but here's what I've seen so far. I'm still holding the call positions from earlier today in SPY/IWM

There's not much apparent in the Euro, but the 1 min and 2 min $USD charts are at new intraday price highs, 3C is not confirming those highs, if the $Dollar drops, that will be supportive of equities or at least that's the normal correlation.



 This looks like an intraday bear flag, watch for gaming of this flag such as a break below to a new local low followed by any upside activity, which would create an intraday bear trap.

 DIA 1 min hasn't confirmed the downside in the move.

 The 2 min chart hasn't turned up yet so it's not quite a positive divergence, but as of the capture it's in the area of one.

 GLD initially was in line, then a small leading positive on the 1 min.

 GLD's 2 min trend is not confirming the downside move as of the capture.

 IWM 1 min actually has a leading positive position here.

 The 2 min IWM has an even stronger leading positive position, I'll be the first to admit, more time is needed before celebrating this divergence.

 QQQ 1 min is in leading positive territory, but needs to turn up before the divergence is complete.

 The 2 min QQQ divergence is complete and positive so far.

 SPY 1 min was in line, there's a slight leading negative

 The 2 min divergence isn't complete, but thus far not confirming the move down.

 Treasuries haven't seen much movement

The only real movement came right before the release.

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