Market Update

I think the easiest way of conveying my expectations based on the 3C charts would be to say, "Take the GLD Analysis and flip everything".


I'll show you the IWM/QQQ as examples because they all look pretty much the same.

 IWM 15 min-Taken in the big picture, the IWM is making leading positive new highs, above last week's price highs, this is bullish.

 However when zooming in, you can see there's a 25 min relative negative divergence in the IWM and other averages, this suggest a decent move down.

 This 2 min chart is showing signs of improvement and perhaps the market will move up a bit here.

 However the 5 min chart is nothing more then inline with prices, no bullish disposition. This suggests to me that the market will make another lower low, probably today. I don't know if the market can or will go this low, but remember my expectation from last week when I said what we would probably see this week is a formation that looks like a "W" bottom and that has taken place already, but I also said that this formation in particular almost always gets head faked and makes a lower low on the second bottom, just like energy and financials did, the market didn't do it, but it would not surprise me to see it happen as it is what I expected last week along with the "W" bottom.

 Here's the QQQ 15 min chart, also with a relative negative divergence, suggesting a deeper correction then what we have seen thus far.

 Here's the 1 min chart, and this is showing the negative divergence yesterday and this is why I warned of weakness for at least the first half of today. Right now this hart is in confirmation with price, it's not bullish or bearish, just in line with price.

The 5 min chart however is in a leading negative divergence and this makes me think we will see another lower low, or a pattern that is similar to a bull flag, the opposite of what I would expect to see in GLD.

However, 1 day does not make a trend, I pointed this out when we were acting very bullishly, when I showed you we are still in a lateral range and I point it out now. The industry group daily charts from last night really surprised me, so overall  think there is a bullish leaning to the market, even though from all sources, Bernanke and the market are painted in a bearish corner, I've just seen 3C contradict the mainstream and prices too many times and come out on top. Back to browsing charts.