Earlier I mentioned the last 2 previous bounce attempts off the Jan. 6th small base and the Jan. 14-16th base and how they both resulted in reaching a similar price range as we are seeing now and they both saw aggressive selling that ended their bounces prematurely, they each had divergences that "were" big enough to carry them further.
Fast forward to yesterday, do you recall these odd 2 min leading negative divergences in XLK/Tech and as a result in the Tech heavy NDX 100 from this post,
Technology/ XLK?
Guess what...? They're back, but not limited to two assets...
QQQ 2 min, yesterday's leading divergence is barely perceptible along side the scale of today's.
To put this in to context, this is the QQQ 2 min chart's trend showing the most recent base mentioned earlier today, the 29th of Jan through the 2nd of February, note how deep the leading negative divegrence is today, this is why it dwarfs yesterday's.
The 3 min QQQ chart wasn't showing much unusual yesterday, pretty much moving at a reasonable pace considering the base/positive divegrence and the move off it, today it seems , as usual in a tight range (wherever the market tends to look the quietest or most boring is where there's usually the most underlying activity going on- what does that tell you about Wall Street's secrecy?)
Yesterday the IWM has not joined the Q's in fact it has been the best looking of the 3C charts relative to one and another, but it is starting to see deterioration out of character with it's movement as recent as this morning.
IWM 3 min is even sharper...
And the IWM 3 min in context...
Here's XLK/Tech 1 min leading negative extremely sharply...
XLK's 2 min from yesterday and again today
XLK 3 min migration
SPY 1 min
SPY 3 min
SPY 3 min in context
As an example of how quickly these are deteriorating, here's the most recent capture since last capturing the chart above, still the SPY 3 min...
SPY 3 min
SPY 5 min trend as it has been throughout.
XLF 2 min leading negative
XLF 5 min leading negative
XLF's 5 min trend...
Just for confirmation, although with so many charts above, I don';'t think it is needed, this is 3x long XLF, FAS, this is the 1 min chart
An extreme move on the 2 min FAS chart...
And even though this was the most recent chart I captured, just to show how quickly this is moving, here's the same chart/timeframe only minutes later.
FAS 2 min
And FAS 5 min
As you can see, I had to put out the last "Fast Update" fast, as the charts are moving extremely fast and extremely negative, the same kind of aggressive selling seen at the last two base/bounce attempts in January.
All of these charts are much worse right now than what you see above, that's how quickly they are moving. For the sake of getting this out, I haven't had a chance to look at everything else I'd like to, I'll get shorter updates out ASAP, but as you can see, as we near the 2 pm hour when the Friday Options Expiration max pain price pin is usually removed, things have turned quite sour indeed.
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