Early Market Update

Whenever I call a post an "Early" Market Update, it generally means that the market is working through retail limit orders and retail traders and we have very little view of what the locals are really up to, other then fleecing the retail traders as is common practice in the morning.

The futures were down so far late last night, it's no wonder we are seeing a move into the gap. Retail traders almost certainly placed limit and market short orders before heading off for work Monday morning, after seeing last night's futures activity. I didn't bring you news of the future activity because it was in a thin market and not during market hours, thus it was very easy to manipulate and was likely being manipulated to run a play like we see in which the shorts are squeezed on a gap fill. As far as futures go, I almost never trust them and it's the best advice Cramer has ever given, but yet wished he had rather kept his mouth shut. Contact me for the video link of how Hedge Funds and others use the futures to manipulate the market.

 The DIA with a 1 min positive divergence on the open, it's starting to lose some steam, but between what was bought on Friday near the close and what was bought at the lows today, this gap play is already profitable for the locals.

 We see the exact same in the QQQ, average prices of Friday's EOD accumulation with this morning's opening prices, makes the gap play a profitable way to start Monday morning for the locals.

The SPY showing accumulation on the gap lower and it seems to be running out of steam. Remember, price can do 3 things, go up, go down or consolidate sideways. The loss of 3C momentum doesn't mean a reversal, it could lead to a lateral consolidation. Either way, it's still too early to see institutional movement, but as I stated Friday at the close, the market is in bad shape, we are close, if not at a reversal.