POP! There GO the BULLS

Sorry this is late, I had a router die on me this a.m.

Last night I wrapped up the post with,


"As for tomorrow, today's internals again were much weaker then price action showed, so this market continues to deteriorate. I imagine the bulls will put in a final stand soon as we are close to several support levels, but ultimately 3C is headed straight down."


Here's why..

Here we are at 3 support levels all in the same area, it makes sense for a bounce to occur here, I was expecting this magnitude.

A friend of mine who has been a floor trader fro decades wrote me this morning and said, 

"Nothing can predict they will do this. To think so is foolish. It gets

worse each week."

So a bounce that was lined up in any case, got some good news and it seems the bulls ran with it. In their minds, this is still very much in the pullback stages (If you ignore recent volume).

3C is showing the first negative divergence now-nothing toward the close yesterday.

DIA on 1 time frame showed a slight bounce positive divergence, nothing indicating anything of this severity, it would take a leading divergence for that.

Here the Q's showed a slight positive divergence EOD yesterday and now a pretty negative divergence.

The only real good news here is the rounding shape of price and volume, both are typical of rounding tops and taken with the 3C divergences, I'd expect to see some downward movement soon. Watch for volume to pick up when price curls down, from there where have to see where this will close. a close up is not to be unexpected even last night, the Bulls were starting to see substantial losses, and getting close to decision time, that support level is the "decider" in a past President's vernacular.

So we'll keep an eye on developments. I'm not too concerned at this point considering the early nature of the move.