QUICK UPDATE

IN EACH OF THE FOLLOWING THREE CHARTS OF THE SPY, DIA AND QQQQ WE CAN SEE SELLING INTO THE GAP UP. This is a typical play we see, most likely market markers and specialists are making retail pay up for a security, they sell them the security at the higher price, in effect go short and cover and buy at lower levels, this is why I say it's tends to be retail or regular people trading in the am and the pros in the afternoon, this is just a quick payday for the market makers and has no bearing as far as I've ever seen on the day's results. Between 11-12 the process of accumulation according to 3C began. Go to the fourth chart.

Below is the DIA (ETF for the Dow -30) and we see a bull flag, which is a bullish continuation pattern as it breaks out to the upside. We see these on all time frames like this one minute chart or daily charts or even longer. Always watch for the price consolidation to take place in a parallelogram that tilts away from the preceding trend, which is the flag pole or the vertical ascent up on good volume. During the consolidation of the flag, we also watch for diminishing volume, most of the time the breakout to the upside will occur on heavier volume.  since all 3 charts above have a form of a leading divergence as compared to the opening gap up, it appears that our bounce theory is on target.

I wanted to get this out to you, but I have more analysis to do so I will be following up with another update shortly.