Early Market Update

As I said last night, I hope we'd see a pullback and a nice base to launch a break of resistance, the fact that the averages and some sectors are now dipping below that breakout level should have the early longs looking at this as a false breakout and it may perpetuate a pullback, but it's a tricky situation. We need to determine if it is the pullback that I would hope we'd see before a real break of resistance or whether it's a sell the news head fake here and now.

One thing I did notice s volume in the averages looks like it will run higher today, so if we do get a strong close, that will be very positive for the market in the short run.

Here's an early update:

 DIA breaks out and drops back down (daily chart)

 DIA 5 min 3C negative divergence

 QQQ still in the breakout area but seeing quite a drop (daily chart)

 QQQ negative divergence right on the open.

 SPY daily chart breakout and looks like it'll head back down into the range. Volume is already running close to half of yesterday's.

 SPY 1 min 3C, in line with the price trend.

 XLE (Energy) hasn't hit the breakout mark (daily)

 Another negative divergence right off the open.

 Financials, the best performers early today, right at resistance (daily)

 And a  negative divergence on the open.

 XLK (technology) breakout and back into the range (daily)

XLK had a fierce negative divergence on the open, much like the Q's.

PM update coming up.