Averages, HYG, TLT Update

I think we are probably very close to the IWM move I have been theorizing about and that I mentioned in the last post.

Some of the levers like HYG that have been a bit slow to come around to the area where they are needed to be effective, usually at least the 5 min chart, are now moving much more quickly.

Tomorrow's F_O_M_C's typical knee jerk reaction could be the perfect cover/catalyst for such a move. Again, whether or not this can be or is worth the risk of trading long I suppose depends on your risk tolerance, your ability to react timely and some further chart strengthening, but the trade I think you don't want to miss either way is to sell short in to any price strength. MArket character has changed dramatically, market trends follow.

As for the averages...

 SPY 1 min leading positive

SPY 2 min

The SPY 5 min is just starting to come around, I suspect it will show a stronger divegrence by day's end.

Although make no mistake about where the highest probabilities are and just how badly this market is falling apart- 30 min SPY.

QQQ 1 min

QQQ 2 min

QQQ 3 min

And just barely the 5 min, I also think this is positive in a bigger way by day's end, interestingly just in time for the F_O_M_C tomorrow.

 IWM 2 min

IWM 5 min, note there appear to be two accumulation areas, generally you'd think to average them, but price on a 3C divegrence will almost always far surpass the first divergence (the higher one), so it can easily break above the range. This may "seem" like a bullish event, believe me, it's not.

HYG 1 min which hasn't been a problem.

 HYG 2 min leading positive

HYG suddenly strongly leading positive and we were missing the 5 min chart that would be needed for market support.

Now HYG's 5 min leading positive.

So we are close to ready to go.

TLT on the other hand, 2 min negative

3 min negative

And for the first time the 5 min chart that has been in line is going negative.

These are two of the 3 or 4 main levers that will be used to get IWM above the $118 level where a head fake/bull trap should be set leading to a true stage 4 decline, much sharper than anything from last week.