Market Update...

OK, so I took about 25% of my longs from yesterday off the table. IT appears Wall Street is using a short squeeze to sell / distribute their longs as well. Remember, ever since Sunday when I suggested this bounce higher, it was always intended to be a short term move, in fact one in which I'd like to use to re-open some short positions in to strength, I don't think we are at that point yet.

 This negative divergence suggests what I said above about Wall Street using the strength to distribute.

This is the same chart zoomed in closer and 3C is close to in line, even though it is in a negative posture. I don't know whether or not we will revisit the bull flag or if that is just history now. A move below the bull flag could bring the shorts back in for another short squeeze, but I don't think this move has that much time left in it.

Here's the depth of 3C activity in the SPY

This move started differently, I would say it's a move up of about 2.50-3 days, the current move seems to have a little stronger accumulation as it is shallower at the white box. You can see when 3C starts to go negative at the white arrows, suggesting we still have upside to go.