Market Update

The DIA and SPY are in negative position, but not negative divergences yet, I'll show you.

As you can see, our last negative divergence where the red arrow starts shows 3C sloping down and prices are higher. Until 3C makes a move lower, I can't call it a negative divergence, I added an orange arrow to the end of 3C at the right to demonstrate what I'd be looking for.

As for AAPL, remember I said the first break was likely to be a false break and we'd likely see AAPL move back into the triangle.

As you can see, the first arrow gave us a hint at a relative positive divergence, the second is a leading positive divergence so AAPL is likely headed back above the breakdown point, this is done to take money from technical traders as they all pile their orders right at support or resistance, it makes the market maker money, it doesn't really mean much as far as the trend goes. We've seen the same support level broken, crossed and broken 3x in one day. Traders just don't learn, instead of listening to the chart, they read books and that causes them to all do the same thing and make them easy pickings for a market maker or specialist.