Thus far index futures are not immediately inspiring for any thing to the upside, which in my view is fantastic since I'm nearly all short and have been holding that position which is working out great.
You may recall the SPX Broadening Top with a CrazyIvan Head Fake on both sides of the top pattern...
It was just about a week ago we were sitting on top of the broadening top in a head fake move above the pattern to nullify it, before there was a move below it at the October lows giving it the momentum for the upside breakout.
This morning however, the market doesn't look inspired to make a move toward that X-Mas rally and possible bull trap.
TF 1 min overnight is largely in line.
The 5 min charts are largely in line and until HYG meets a 5 min positive divegrence I wouldn't expect any bounce.
HHowever at 7 min charts you can see the slow process of accumulation of some shares has started as early as last week. For a bigger view...
Even on a 60 min chart you can see where and when it started, you can also see in comparison to the negative divegrence that has brought us this far down so far, it's a fly on the wall, thus the reason I think when it comes, it is a head fake move/bull trap that fails and moves back to new lows and my target of the bottom of the Broadening top, below the October lows.
I suspect the market may make its stand around SPX 1950, perhaps timed with the F_O_M_C tomorrow? We'll know more in a few minutes, until then, keep managing those short positions and raking in the gains.
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