Market Update

DIA 1 min, The 5/6 divergence was accurate, but not as sharp as the current divergence

 To see a negative divergence this sharp, this quickly on a 10 min DIA chart is a bit unusual.

 The Q's 1 min

 QQQ 5 min

 But look at this QQQ 10 min chart, that looks like a real change in opinion to see a 10 min divergence this deep this early.

 Here's the SPY cycle, remember yesterday I used PCLN as an example for a break of a major or important trend line and how we should expect a bounce. The 15 min chart here is already moving into a negative divergence.

 The 5 min chart has also gone negative

The same for the 1 min chart into higher prices today.

 However, the WM may be the most dramatic change, here's the 5 min chart.

This 10 min chart of the IWM is probably the most interesting.

Whatever the case may be, a cycle typically has a bell shaped curve to it, this particular cycle looks like it's being cut short and the change in character seems as if it occurred overnight. It is possible that stocks are being sold to meet margin requirements in commodities (silver/energy) or it may be just a change in the overall view of extended leverage in what some may view as an unpredictable environment. There are a lot of possibilities, but for now, what I'm seeing is what I expected to see for the most part, I'm a little surprised about the changes in equities, but just a little.