Wednesday, March 30, 2011

Still Quarter End Action

And someone send me a calander, I've said several times the quarter ends the 30th, not true, there's 31 days in March, but sometimes you say something and just keep repeating it, kind of like lokking for the car keys that are in your pocket- I hope I didn't just admit to something that only happens to me.

Here's EOD action, also when smart money trades the most...

These captures are from about 5 mins before the close, so they don't show that it got worse into 4 p.m.

 DIA, intraday, momentum was declining in MACD. Most of the gains this week have been on the open and lateral trade the rest of the day, which isn't as bullish as a market trending up all day and with good breadth and volume. Note the volume surge as intraday stops were hit. I don't even have to draw a trendline, support is very obvious.

 DIA 1 min showed a negative divergence most of the day so I think it's building in to the longer timeframes as TOMORROW is the end of the quarter.

 Q's showed a very negative 1 min divergence
 And there it is building into the 5 min as suspected.

 Just for perspective, since we went negative several days ago, that's been building into longer term charts like this 60 min. Usually we turn at 15 min divergences, but as breadth has showed and market action, funds are manipulating the markets short term to keep Q1 returns looking the best they can to avoid redemptions.

 SPY 1 min

 SPY 5 min

And the TICK index hitting lows for the day.

Stick around for a few minutes, I was working on a post on commodities I wanted to get out to you.

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