Just as yesterday we saw improving 3C profiles that led to a higher market today, today we are seeing a lack of follow through on the upside opportunity. This is the type of volatility that wracks all traders nerves and makes holding positions with tight stops very difficult.
You'll notice all the charts were off to a good start, then turned into an upward tight consolidation very reminiscent of a bear flag. In the case of the DIA, 3C 1 min is just plain negatively divergent and not confirming this parallelogram type consolidation.
The QQQQ 1 minute is definitely in a negative "Relative" divergence.
The 5 min looks like a leading negative divergence.
While the SPY would seem to be confirming, it's lower 3C positioning puts it into a relative negative divergence.
All in all, the accumulation we saw yesterday seemed to be stronger then what the market is producing today. It may be that something came as a surprise or a surprise is coming. What I can say is price action with or without 3C is not at all what I expected. It will be interesting to look at 3C if we reach today's intraday highs, that way we ca judge just exactly how much damage is present.
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