Wednesday, September 28, 2011

Market Update

 DIA 1 min, yesterday afternoon's late day positive divergence which led to the upside this morning, there was a negative divergence on that move and right now the 1 min chart is in line with price. In other words, the DIA is not showing signs of the pullback ending yet.


 The 5 min DIA is in line, it was negative at this morning's little bump up.

 This is a potential support area where we may see some positive divergences, or it may move to close the gap from yesterday's open.

 IWM 1 min is showing some signs of positive divergences, but this is just a start, it needs to hold.

 IWM 2 min is showing positive divergences on 3C and the depth chart, so far I'm very happy with the decision to take partial profits yesterday.

 IWM 5 min is showing a relative positive divergence. I'm guessing small caps are outperforming large.

 QQQ is also starting to show 1 min positive divergences, 1 was late yesterday and that played out earlier this a.m., now we have another starting, but a 1 min positive divergence is enough to move the market intraday, not enough to reverse the pullback, but it's a start.

 QQQ 5 min is still negative, which I would expect to see being the 1 min isn't positive enough to bleed in to the 5 min yet.

 SPY 1 min is at a relative positive divergence, which is good considering it was lagging the worst late day yesterday.

It has bled to the 5 min chart. We'll see if it continues to build, if it does and the other averages fall in to line, I may add back the shares I took profits on as  would be adding them back at a lower cost basis.

I have more charts to look at, as always...

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