Updated Market Analysis

Remember that our bounce was called to the day, but it hasn't been strong in terms of 3C backing, I've mentioned that yesterday. So this morning we talked about the possibility of the locals re-establishing their positions, the other option is the end of the bounce which we are also on the alert for. Here's how the action is shaping up.

 DIA daily chart and the next resistance zone. Typically before reversals we see that false move, it would likely be into the resistance zone if it came.

 The DIA so far has been the best acting as far as 1 min confirmation goes.

 The 5 min though looks a lot worse, remember that the action filters through to the longer time frames and around a5 minute charts, when we see a negative divergence we are usually near or at the actual reversal.

 IWM daily resistance, a higher high today would form a bear flag, so far we have an odd pattern which is a bullish ascending triangle, I believe this to be a random pattern, their success rate in a down trend is VERY low.

 The IWM hasn't pulled back much to fill the gap, but there is distribution evident on the 1 min chart; it's also starting on the 5 min chart as well.

 The Q's in the same pattern as the rest of the averages, resistance is near $56

 The Q's have backed and filled (this was opton 1-that trader would re-estblish positions let go of last night near the same area, however, we don't have any accumulation as of yet, so we could be looking at option 2 in which the bounce may be ending. Before the market was heavily manipulated by black box pattern recognition patterns, the daily chart would look very much like a reversal. However, now the new reality is the patterns are manipulated.

 The Q's 5 min chart looks negative as well. The opening gap was sold off heavily.

 The SPY daily resistance zone

 Here we have the SPY at least in confirmation at the green arrow. However, there seems to be no sign of option #1

The 5 min chart is deteriorating.

So now we watch for the 10 and 15 to show signs of negative divergences and we may have an actual reversal at hand. This is a little bit of a change of character being the news today hasn't been very bad, should the market start to sell-off on a day in which the news isn't very bad, we know that we are approaching stage 4 decline-similar to what you saw in yesterday's charts of MSFT