Market Update

Yesterday near the close I brought you this post, LAST UPDATE and last night I told you about the singular Price/Volume relationship dominance that suggested a 1-day overbought condition. It seems the DIA was tipping it's hand yesterday. Here's what the chart looks like now...

We saw a persistent negative divergence all day yesterday and the Dow traded laterally most of the day-that alone is breeding grounds for distribution. This morning's gap and the highs attempted this morning were both hit with negative divergences and that's where we stand as of now. There are divergences on the Dow now stretching out to the 60 minute chart-not a good sign. We'll see if Brian "Sack" is going to feed the Primary Dealers obscene profits on 2 week old treasuries and try to levitate the market.