As you know, most of yesterday saw improvement in the 3 5 min charts, leading me to suspect a bounce is brewing, which is not unusual (refer back to my 1st post yesterday on the shape of reversals). Options expiration this week will likely contribute to the volatility as well as earnings season kicking off. AA reported yesterday and thus far is more or less in line with the broad market, so not a big response from AA's earnings.
Here's where we are as of now.
DIA 5 min from reversal to a positive divergence yesterday.
IWM (5 mins) has looked especially good compared to the other averages,
However as you can see on the hourly chart, whatever is going on in the shorter timeframes, it's been pretty much restricted to the shorter timeframes, the 60 min. chart has shown no improvement, thus far leading me to believe any bounce that we may see won't be much more significant then the typical volatility seen around reversals. There's nothing here suggesting a more significant change in character.
The QQQ 1 min 3C chart with a positive divergence on the afternoon lows yesterday.
The SPY has been the one average that hasn't shown anything on 3C that is significant. It is breaking out of the volatility zig-zag I mentioned earlier as a possible algo trading pattern.
On a side note, DKS and FSIN, both short candidates that I was hoping to see bounce some more, both have. FSIN is in an excellent area, but it doesn't look like a great entry just yet, it may add a little more, but would certainly keep this on my radar and watch for any changes in the trading of both, especially FSIN.
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