Tuesday, July 12, 2011

Back to the Price pattern

You may recall that Friday post, where ES diverged from the risk basket, well I don't have a Bloomberg terminal, but I looked at TLT and UUP, both would be similar to parts of the risk basket.

 TLT 1 min

UUP ($USD) 5 min

Both are showing some sign of a negative divergence. Yesterday the market for the most part continued with 5-10 min positive divergences. If you remember when we saw this pattern last Friday, the S&P was bid up, I'm not sure f we are seeing something similar and maybe later we'll get in to what some people believe is behind this or rather who is behind the algo.

For now well have to wait and see if the market catches an odd upside bid.

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