Watch this triangle

There's a small intraday triangle from about 2 pm on, it's obvious and I have a couple of 1 min charts showing a negative divergence. Watch for a break below, we want to see that recover quickly to a break above, otherwise they may be setting up an afternoon sell-off, perhaps with a rally into the close.

3C can give "fuzzy signals" in a congestion/consolidation zone, as most indicators do. I checked the more robust 10 minute which is devoid of the intraday noise and it appears to still be on track in confirming the trend, but a little low compared to equivalent past price levels. This may be a function of the fact that there is little accumulation occurring, that was already done. What we want to be on the watch for now is the signs of selling or distributing and i can't see that on the 10 min as of yet. A breakout north of the triangle that holds will probably pull 3C up to appropriate levels. However, as we talked about this a.m.-obvious patterns are easy targets to take out. So watch for a breakout, good volume wold be helpful. On the SPY, it will be around $106.70.

An afternoon retracement is not something to get worked up over, they are common especially as day traders exit the markets. The close is what will be meaningful.