Market Update

So far everything is progressing, but progressing in a very dull manner considering the Dominant Price/Volume Relationship last night which was incredibly dominant and  it will be fulfilled with green closes as that particular relationship most often results in on the next day.

Otherwise, since the VXX/TLT/HYG update, three's progress, but slow in most cases.

The SPY Arbitrage that we suspected would be in effect as a method of supporting the market is with HYG up, VXX and TLT down on the day.

I'll post a futures update and leading indicators as well as several more assets, but here's where we are now, again painfully slow and dull considering HOW oversold the market was on a 1-day basis yesterday which you can see in last night's post, Daily Wrap.  Pay special attention to the Dominant Price/Volume relationship which was as dominant as I can remember it being and pointing towards a green close today, also the S&P sectors and more importantly the Morningstar groups (how many closed red). Essentially I'm saying considering the market internals yesterday, today's move, despite the IWM with a fairly decent gain, is much tamer for a bounce than I would have expected.

This move is not over yet, but I do see deterioration.

*These charts are slightly sour as the market just put in a stronger relative move in the last 3-4 minutes)*

 HYG is seeing worsening activity as the 3 min chart digs a deeper negative divegrence.

 However until this 5 min chart is negative, I don't see this bounce as done.

VXX is also showing improvement intraday in underlying trade, but I'd like to see a leading positive divegrence as I drew in with the orange arrow, otherwise action has been dull , but not just here, EVERYWHERE.

I would NOT be surprised to see a VIX smack down at the close.

 TLT may be the one exception, the 5 min chart is putting in a stronger divegrence, so much so it has migrated over to the 10 min chart which is what I was thinking may happen and why I've been holding off on a larger TLT update as this is really the main aspect I've been waiting to see resolve and ironically it is the asset that is seeing the strongest intraday underlying movement.

 TLT 10 min now leading positive this afternoon.

The TICK chart went from a trend to flat between +/- 750 which explains why the+1250 so there's a bit more excitement now as opposed to just 10 mins ago (and all day before that).

 IWM 5 min still has its  divegrence, but has been flat the rest of today.

There's very little movement otherwise in the averages themselves, but they never had very strong divegrences, it was the Index futures that really told us the most and I'll update those soon.

 AAPL is seeing some interesting activity as the 2 min and now...

3 min charts are starting to lead negative.

I won't say that this changes anything as far as the AAPL set up, but if this behavior continues, AAPL may have to be a short where it sits for those who want it.

More to follow...