Wednesday, April 20, 2011

Market Update

 DIA 1 min

 DIA 5 min in a leading negative divergence

 QQQ 1 min

 QQQ 5 min in a leading negative divergence

 SPY 1 min

SPY 5 min in a leading negative divergence.

It's still very early and lunch hour on Wall Street, but between the 5 min charts, the lateral price movement in the averages and deteriorating breadth, this is eerily reminiscent of Friday's action in which we saw almost the exact same thing. I noted on Friday it was my belief (because of the deterioration and persistent lateral trend) that they were going short on Friday, Monday we found out why.

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