Market Update

Friday we ended the session with 1 min negative divergences in all of the averages and mostly 5 min negative divergences except in the SPY. Last night I wrote that the Irish government accepting a deal over the weekend was most likely already priced into Friday's close, it seem that may have been the case. Here's the SPY 1 min chart.

As you can see the red arrow (Friday's negative divergence) opened today with a gap down. There was a slight positive divergence this a.m. that led to an attempt to fill the gap. Currently the 1 min is inline, but as I added Friday, if the negative 1 min charts keep up, they should bleed into the 5 min chart.

Here's the DIA 1 min

First the Friday negative divergence leading to the gap down this morning. There was no positive divergence this morning, but there was a second negative divergence that occurred this morning, making the DIA look worse then the SPY. Currently it is confirming the price action.

The QQQQ 1 min

On Friday we saw the QQQQ negative divergence react toward the end of the day, it continued this morning. there was a second negative divergence as the Q's tried to fill the gap at the highs this a.m. Currently the QQQQ is in worse condition then confirmation. The 5 min chart looks very bad. The DIA and SPY may end up looking like this if they keep on their course as the Q's responded earlier.

QQQQ 5 min

A very bad negative divergence on Friday that has grown worse at this morning's highs.