A Broader Example

This is the QQQ 15 min and I'm able to show more history.

The first two red arrows to the left are the market top at June/July that led to the nasty late July/early August downtrend. From there we predicted the downtrend would subside and it did. We've had several cycles up and down in this bear flag which we have caught all of them. If you look at the bar chart below, this is the current cycle, which last week on Friday I said I thought it may have a few more days in it. The FOMC part is where a lot of confusion comes in because this flag is obviously much more shallow then the distribution of the top and decline. If you look at the two red arrows on the bar chart next to each other, the first us yesterday's depth if negative divergence, the second is today's which is even deeper, suggesting distribution in to today's move up. It is also now the deepest negative cycle since we saw the top as it added more negative depth today.