Closing

For those who don't already know, 3C which is my proprietary indicator, is named so after something Don Worden (one of the most under-appreciated pioneers of moneyflow indicators) said in one of his books, I think "Street Smart Charting", which I have to tell you, if you want a perspective that veers from traditional TA, he offers it. Any way, he said something that stuck with me and has served me well and it the basis for the name, "3C" and that was, "COMPARE, COMPARE, COMPARE". You'll notice I have 3 versions of 3C, I compare every timeframe, I compare every index, I compare short ETFs to the averages they represent, FX, breadth, anything I can. There's no reason in the world that 3C would be negative the S&P/SPY and positive the inverse ETF, SPXU unless there was something that was really going on. 

Now with some help from a friend and member, we have ES and the ability to see 3C in extended hours trading, again, why would ES, a totally different market-Futures, not stocks, show the same thing if there wasn't something to it?

So here are the closing ES and extended hours SPY charts.

 ES 1 min today, closely mirrored what we saw all day in the market, nearly exactly. That last run into the close, ended on the strongest kind of divergence, a leading negative which means there was some heavy duty distribution/short selling in to that run.

 Here's the ES 5 min for Thursday/Friday 24 hours -And again today produced the worst negative divergence I have seen since I started looking at ES with 3C. This also is a leading negative divergence. Note they accumulated in the very thin volume hours of 3 -4 a.m. to push futures up and in the heavy volume regular hours, they distributed in to the highs. That should tell you something about how Wall Street really works. Manipulate the market higher when there's no volume and it costs very little and then sell in to that strength or short it when there's plenty of volume to fill their large positions. That's being gamed.

 Here's the continuous data 3C hourly which includes regular hours plus pre market and after market trade. This is a 20 day chart. Again, note the leading negative divergence now and as usual, in to price strength. Think about the meaning of these actions, why and you'll better understand how Wall Street really works or works people over.

This is the weekly 3C continuous data, the green arrow is where we called for a halt to the sell off and started buying while others thought the market would keep falling, but now this hart is leading negative again.

Some things to chew over. I'm starting to think this next leg down is going to be a lot bigger then expected. I'll be looking in to that this weekend.

Have a great weekend!