SPXU Update (with FAZ, SQQQ and some other indications).

SPXU is not one of my personal current holdings, (3x short S&P-500/SPY) just because I have broad market exposure via SQQQ , FAZ and SRTY which also gives me exposure to tech via SQQQ, small and mid caps via SRTY and Financials via FAZ although SPXU would also give some exposure to financials as the S&P has a fairly high financial component representation.

I've thrown in not only some multiple timeframe confirmation, but multiple asset as well as a few other assets that have very similar chart patterns that are what I'd call, a bit abnormal.

First SPXU (3x short S&P 500/SPY)...

 The 60 min chart in SPXU has no divergences except at the far right (positive). Even though there was certainly distribution at the October highs, if it is not strong enough, it will not show up on these longer timeframes which represent large divergences or underlying action.

The form of the positive divegrence here reminded me a lot of another asset...

 FAZ 60 min, 3x short Financials and while the S&P is not a majority financial components, it has one of the strongest financial component representations just as the NASDAQ/QQQ would have one of the largest Tech representations, so I suspect this odd signal that again in FAZ (3x short financials) shows no divergence until the positive to the far right like SPXU above for the same reason, the Financial component in the S&P.m These two charts would suggest that component or Industry group is much weaker than other groups on a relative basis and judging by Window dressing and the use of the F_E_D's 1-day reverse repo facility on the last day of the quarter  (window dressing) which showed 4 tenths of a trillion dollars in balance sheet/collateral shortfalls among banks, I imagine relative weakness in the sector is not that far fetched.

SPXU 30 min, again no divergence or barely one at the top which suggests the negative wasn't strong enough to reach the 30 min timeframe in any meaningful manner. However the large 30 min positive suggests there's quite a bit of movement in underlying trade in SPY short/SPXU long.

 Again looking at FAZ, 3x short Financials, we have nearly the exact same signal, except no negative at the top.

Everything else other than the current positive 3C signal is in line.

SPXU 10 min is still a very strong timeframe, but more detailed as smaller divergences or smaller underlying action are clearer on this chart including distribution at its top, yet not the strong distribution that was lacking on 30/60 min charts and a strong positive divegrence currently.

 Returning to FAZ 10 min, it is in line, even at the top  until the most recent positive divegrence, so the negative which there was some distribution, wasn't even strong enough to reach a 10 min chart.

In other words, FAZ long which is one of the positions I'm personally carrying, looks to be a strong long/Financial short.

 SPXU 5 min showing in line in to the mid-October highs (lows for the market and SPY) and of course a clear 3C positive divegrence.

 SPXU 2 min would show a lot more detail being a much smaller timeframe and it's pretty detailed, the interesting thing here is the size of the positive divegrence. I'm not only thinking of the concept of price's tendency to move beyond where a divegrence first started, in this case around the $45 level, but the scope/size and intensity of the divegrence also have a lot to do with its performance.

UPRO-3x Long SPX/SPY (this is the opposite of SPXU above and moves with the SPY, just with 3x leverage). UPRO is included as part of multiple asset confirmation.

 On a 60 min chart UPRO shows the negative divegrence that was clear at July that led to a 4% SPX sell off and about an 8% Russell 2000 sell off in to the August lows where we saw accumulation over a week long base at #2. After the mark up stage we have a rounding top at #3 (yellow arrows) and the Igloo with Chimney head fake concept at #4 which almost immediately led to stage 4 decline. As I often point out, head fake moves tend to be some of our best timing signals and entries. At #5 the August cycle is in stage 4 decline , breaking to a new lower low, just as I suspect this current cycle will as it reverses to the downside (a low below the October low) at #1b.

Again, that weak , non-confirmation leading negative divegrence at #2b just like we saw above in SPXU 60 min and FAZ 60 min.

 In fact, TQQQ (3x long NASDAQ 100/QQQ) also shows the same type of divegrence on a 60 min chart at the same place as well as having the same signals and Igloo/Chimney head fake top at the August cycle top before stage 4 decline to a new lower low.

 UPRO (3x long SPY) 30 min also showing the same as UPRO 60 min from the July distribution leading to a -4% SPX move and -8% R2K move to stage 1 base at #2 which was the base for the August cycle, the igloo with chimney head fake top at #3 and #4 followed by stage 4 decline at #5 leading to a new lower low at the October lows at #6 and that same non-confirmation leading negative divegrence at #7 on even a 30 min chart, just like FAZ and SPXU (3x short Financials and 3x short SPY) leading positive divergence (nearly a mirror opposite) on 30 and 60 min timeframes.

 At the UPRO 10 min chart we finally start to see more detailed charts as the divegrences or underlying trade is smaller and more detailed with a positive in to the October lows as we saw for nearly 2 weeks in some cases and the leading negative currently, again confirmed on SRTY, URTY, SPXU, FAS, FAZ, etc...

 UPRO 5 min with the positive at the stage 1 base and a leading negative that has hit a new low (3C) below the October 3C readings.

 UPRO 1 min with the distributionary signals I mentioned several times yesterday in to the 30th with HYG built already as support in to the 31st, the last day of the fiscal year for most mutual funds. After that we see more leading negative divergences.

While I'm not personally holding SPXU, that's more out of circumstance and current holdings rather than preference, I like SPXU just as much as I like SRTY or TQQQ.