Market Update & warning.

It looks like the market wants to bounce in this area, if it can,  this is NOT a move I would trust even for a short intraday period at this point.

Here are some example charts and keep in mind the prerequisite since last Friday was the market had to do some pretty serious work, I do not see that as having been done.

 SPY intraday 1 min is looking more impressive, but this is still a 1 min chart only and still a very small area of real estate in which the leading portion of the divergence resides.

This is one of the charts that makes it look like the market wants to move intraday. It would be best if it just continued to move laterally and build the divergence.

The SPY 2 min chart is NOT showing anything similar as a leading divergence.

 SPY 3 min positive divergence , yet hardly leading and again not very large at all.

This is the real problem. A trustworthy reversal is a process, not a "V" shaped event, this is exactly why or a symptom of why I would not trust any kind of upside movement from here.

QQQ 2 min shows a similar leading positive divergence.

And its 5 min chart's looks a little more impressive here, but put it in to context...

 This is a very small divergence after a very large distribution area. The market has not done the work.

And again, that tight "V" shaped price pattern. Just as if you were building on top of this as a foundation, would you rather build on a pivot or a more stable , larger lateral base?

The IWM 1 min is also leading intraday

And it goes out to about this 5 min chart.

There's a chance that the market stays put price wise and continues to move laterally and continues to build something a bit more solid and we are still talking about a corrective move really.

However the 100-day SPX moving average is right in the area which is sure to trigger some buy orders and squeeze some shorts on a break above it...

SPX daily chart and 100-day moving average with price right below it.

The divergences above look to me like the market wants to try to pierce the 100-day and squeeze some shorts, maybe get some people buying the dip/move > the 100-day.

There simply isn't a base here that anyone with any influence has bought in to and for that reason, I would be very careful about trusting any upside move that may develop from here.

On the other hand, if it does develop and it sends some of our watch list assets higher as a few are already doing today, shorting in to those, letting the trade come to you is something I would absolutely support.