This is strange, last update I told you the Dow had been seriously lagging, keep that in mind.
In about the last 20 minutes some serious damage has been down and 3c 1 min has headed significantly lower in the SPY. One of the 3 versions is nearly at a new low for the day. Two of the 5 min versions have also seen rapid deterioration.
The QQQQ has deteriorated but not to the same extent, but it has become more negative.
The IWM has one version of 3C that has made new lows for the day in the 1 and 5 min time frame. Another version has the 5 min time frame looking very bad headed towards new lows and pointing down, the 1 min is also showing some of the worst readings of the day, but not quite at the lowest point. This is all significant as prices are significantly higher then the open.
The Dow/DIA however, -well, forget that. I can't type fast enough to keep up with it. In any case, it was improving, while still negative, while the others were falling apart. There is 1 1-minute that shows a pretty decent looking positive divergence still, but with the others falling apart, I'm guessing it will follow soon.
You can see how fast these things move and this is why I prefer to concentrate on the overall trend, but you never know when one of these is going to lead to something significant. Lets see if they move the Dow up in the next 20 minutes as it has lagged all day.
5 years ago
4 comments:
Looks to be some leaks in the dam...maybe somebody has figured out ahead of time what is about to happen and don't want to be holding the bag. I wouldn't have expected a sell off 20 min prior unless there was a leak.
It's hard to say, day traders making a profit aren't going to risk losing gains in front of the Beige book. However, when Institutional money soaks up all the demand by selling short to them and there is no institutional demand to push prices higher, this is also what happens. And then there's what you said, but they'd likely already be short.
I find the lack of volume interesting, considering that we're past the holiday. Kind of eerie... not even the crickets are chirping. Like a slasher movie, right before something bad happens.
I think part of it was the uncertainty of the afternoon events, but the other thing is that smart money has already set up their trade last week, so they're not as active in the market right now leaving only retail traders. As for a price advance, I warned of this last night, but I really thought if they did it, it would be more jolting, today's advance is so average and typical, I could probably find 100 charts tonight with the hanging man reversal and a 4th day like today up slightly.
The market obviously knew what both events would be because they have been distributing and there was no sign of any accumulation beyond some market maker stuff, so they knew there would be nothing coming out worth buying.
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