Update

It's a little early for readings from the 5 min charts, I just include them to see Wednesday's activity. Remember that distribution is a process (negative divergence) in which locals/smart money are trying to exit positions at the best available price, this is why it is called a divergence-price is going one way, while 3C showing the underlying trend is going the other. Wednesday suggested to us that locals were moving out of the market, that leaves retail to support it and retail can not support such a large position in the market, especially when retail has been fleeing the market. Once institutional support is gone (and they may have shorted as well Wednesday) price drops.

 DIA 1 MIN

 DIA 5 MIN


 QQQQ 1 MIN

 QQQQ 5 MIN

 SPY 1 MIN

SPY 5 MIN

Right now we are seeing the typical gap being filled, what happens next, we'll have to watch the 1 min, but there's already some signs of negative divergences in the 1 min charts.