ES & VWAP

We'll take a closer look at the averages and see if there's anything to these charts, but as you know the last couple of days we've had some weak positive divergences that haven't done much. As mentioned earlier, you can't separate hedge fund redemptions with 89% underperforming the S&P and the effect they'll have on the market, especially when a big shot like Paulson loses the confidence of CITIGROUP.

The VWAP has long been used as a measure of how well a market maker or specialist can fill an institutional order, if they can fill it near the VWAP then they did a good job, if they are accumulating and can fill below the VWAP they did a great job, if they are selling and average below the VWAP they aren't likely to get more business from that institution. So I thought we'd take a look at ES, 3C and VWAP.

 3C/Es 1 min on the open, a minor positive divergences at ES's low pre-market.

 The daily VWAP acting as resistance as if there were sellers every time ES reached VWAP.

 The Weekly VWAP on an hourly chart, note where Es is in relation to VWAP, note where it has been as ES has turned over.

 Here's a closer look.

The ES/3C 5 min chart. there's a small leading positive divergence in ES here, enough to get up to the weekly VWAP? We'll have to see what's going on in other assets first, but this is another reason why I would consider selling/shorting in to strength to be a reasonable plan of action.