Wednesday, November 17, 2010

Second Verse Same as the first

We saw this yesterday and now again today, the 1-5 min divergences are just all over the place. Here's the QQQQ 5 min divergence which has turned negative.

At the white arrow we see a positive divergence that led to the climb in prices that you can see in the green square. The current negative divergence is seen at the red arrow where the Q's made a new intraday high which was not confirmed, but instead formed a negative divergence. Lets see if we get some kind of selling off this divergence.

3 comments:

JC said...

Friday is option expiration day...bigggest open call position is $120.

Brandt said...

Well, they'll probably get pinned.

JC said...

That would indicate a bounce between now and Friday to roughly the $120 level on the SPY. Is 3c confirming this? Would like to exit some short positions if that is the case. I can buy back on Friday at a lower price (short ETF's) or higher price if an individual stock.