Getting Out

In the last update, I suggested we may see some distribution or selling into the close. The divergences aren't powerful, but none have been today as traders have been very cautious. It appears they rather be safe then sorry and some negative divergences have appeared in all of the majors.

 DIA

 IWM


 QQQQ

SPY

Hopefully you used today to add to or initiate some short positions. I think the locals are taking the better safe then sorry as they can always run the market up tomorrow if events warrant, but they don't want to be caught in a mini-black swan event.

Based on what we see right now, I wouldn't expect too much upside tomorrow, however, the 6 pm vote and subsequent actions will determine the end result. As I've made mention several times today, the commitment to this accumulation cycle is just not there, it wasn't strong yesterday (strong enough to deduce that we'd probably see the gap up though) and today they have been luke-warm at best.

So if it were me, I'd pull any longs that I may have had in place to ride this bounce and just sit tight, preparations should be made by now.