Tuesday, August 16, 2011

That 10 min positive divergence

I know some of you are a bit confused by the pocket of strength I showed you earlier in the 10 min divergence across all of the averages. I wasn't sure whether to post it or not as it causes confusion and I myself found it to be out of place, but I owe it to my members to give you the most current information. So lets take a look again.

 Here it is, the 10 min positive. Note that the market recovered off those lows nicely, so I suspect it was a pocket of strength meant to lift the market intraday.

The 15 min chart is more important to the bigger picture and it is negative suggesting that pullback I've been talking about since yesterday. Also note in the red box, where the 10 min positive occurred, price is going up, the 15 min 3C is going down, so the 10 min positive so far has had no positive effect on the 15 min chart. I have to go with the more powerful chart, which is the 15 min and assume that the pullback is still on.

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