Market Update

This update s rather late, but as I mentioned to some subscribers asking for an update, "I've been waiting for confirmation of my suspicions" and now I have pretty good confirmation.

This post from Friday is crucial to my theory, "What Can We Expect After Op-Ex Today?" 
The post is a bit long and requires some attention to understand it, but in essence, the positive divergences in the market led me to believe that we may see upside after OP-EX Friday so Wall Street can trap longs and set up shorts. You may recall I warned that the Monday after May's Op-Ex Friday was a down day and then the market went on to bounce for 6 days before resuming the downtrend. The point of the lower open on Monday was to accumulate a position of longs for the bounce, which would be sold into the bounce and a net short position would then be in effect, next the market dropped. Mark Twain says history doesn't repeat, but it rhythms so I'm not saying that the May model will play out the same way now, but the general idea seems sound.

 Here's the SPY today on a 1 min chart, the accumulation that would be needed for the theory to pan out is well under way.

 The 5 min chart is now in a leading positive divergence.

 The 10 min chart's strength is what made me think we'd see a theory similar to what I proposed last week.

 The 15 min chart's strength also was part of what made me think this was a possibility.

 The 30 min chart was barely showing a positive divergence earlier, it's improved significantly in a very short period of time, suggesting that the accumulation on today's dip is quite heavy.

As for the bigger picture, the most important of these charts, the 60 min remans locked in a negative stance, this is what makes me think any bounce in the days to come, would resolve to the downside.

This is my working theory at this point, if there are changes, you'll be the first to know.