Monday, July 11, 2011

Market Update

Well the 1 min charts aren't showing much, but the 5 min charts that worked earlier in showing the fall was going to level off are showing us something.

 DIA 5 min showing some good positive divergences and a slight leading positive

 The IWM is looking especially good on the 5 min.
 As are the Q's.

It's starting to look like this basing activity may be a multi-day event, perhaps we see some upside this afternoon, and some tomorrow as well.

 The SPY is finding support at the 50-day moving average, which is simply a trader induced self fulfilling prophecy.

There are some gaps on the upside that could use filling, the gap from Friday (the highest one) would be best left unfilled, creating a bearish breakaway gap or a mini island top.

Remember the first post of the day and what reversals tend to look like, they aren't always, actually they are rarely clean u-turns.

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