Update 1

So far there's not much activity. On the SPY there was a negative 1 min divergence at the 10 a.m. Highs and a small positive divergence at the 11 a.m. Lows. Everything else is in confirmation mode-meaning tracking price with no divergences at this time. The DIA did put in an 11:30 small negative divergence, while the QQQQ put in an 11:15 positive divergence. Right now the QQQQ looks the strongest on 3c.

Because of the solid leading divergence yesterday, the 3C chart on the averages is trading relatively low as compared to what it should be, this is an effect of yesterday's distribution into higher prices.

Living in Florida, I've been hearing about this for awhile, but it seems the bank/service provider/legal council side of the foreclosure epidemic, has made some serious no,no's in trying to speed up foreclosures including falsifying documents, foreclosing when the actual lien holder is not known, but rather faked, etc. Now it's spreading. It's been in the local papers for sometime here-everything controversial seems to start in Florida-think hanging chad-not the child.

Do not underestimate the root system this controversy could have. Home sales numbers, banks and drawn out litigation, losses, etc. This could be shoe number 2. It may also be why we are seeing pressure in the financial sector.

XLF is seeing more 3C selling pressure as it is in another leading negative divergence on the 1 min. The hourly 3C chart on XLF is lower then it was in August at the price lows.

I'll keep you informed if anything picks up.