Afternoon Update

We now have solid negative divergences in the SPY and DIA and a divergence, but not as strong in the QQQQ. It looks like we'll see a reversal here to test the $46.60 area or around the opening gap. That is first real support. A move below that would likely come on heavy volume as stops are likely piled up in the area. So we need to watch for whether the market makers/specialists are just running stops in which case we could see a range bound afternoon until the EOD or if price breaks and heads for the days lows. A break of those lows and the probabilities of that lower close are very high, volume should pick up in that area as well.

If you are trading any of the breakouts, set stops if you are looking for quick gains, the GOOG trade is the only one that I can see the possibility of a trend lasting over a month. While the others have the possibility of more gains, they do not have the same set up that Goog has. If you are in any of these trades that have already produced an opportunity for a nice gain, feel free to email me to discuss stop ideas.