This is What I Was Looking For-Now, Does It Hold

Last night's post/daily wrap showed the multitude of negative divergences in the SPY, DIA, QQQQ and IWM as well as the candlestick patterns that all pointed to a reversal save for the Dow's. We still have the issue of Primary Dealers and the SFP program unwind which is speculated to perhaps put as much as $25 billion dollars into risk assets starting today, so we have to watch whether that money comes into the market on accumulation at lows or not. As I said last night, in a normal market, both the candlestick patterns and the 3C charts would all call for a downside reversal. The question remains, what the Primary Dealers have from the Treasuries SFP unwind and what they do with it.

 The white block is the new breakout highs in both the S&P and DOW, it's also a potential bull trap as buyers buying the new highs expecting a new uptrend are now underwater. their selling, just like in the FXE (EURO) can create a fast move down. Do the PD's accumulate that pullback? We have to watch, it's also a bit early to be claiming victory as we are in early morning trade.