The SPY Does It

Earlier and subsequently I have talked not only about the strong signals of dual positive divergences on the 15 min hart, where most of the reversal action happens, but I sad we would have a VERY STRONG signal should the SPY carve out a 15 min new leading divergence.

It has done it...

And there it is. This is the underlying action in the market. My guess is the widespread knowledge of the futures market being so positive caused a lot of traders with day jobs to enter orders and head off to work, it looks like Wall Street took that crowd to the cleaners. For the 15 min chart to move up like this, it underscores the underlying action behind today's trade. I cannot remember the last time I saw a divergence this strong fail, perhaps in 2008 when Wall Street lost control of the market.


We've had nothing but bad news today, yet the market is down about a half a point and the 3C chart looks like this? I think someone at GS has a direct line to Boehner, Reid and Obama's office.