Market Update

I've been skimming through some charts and found some interesting ones.

First the market averages as I posted the SPY, here are the rest.

 The DIA zoomed in like the last post (second SPY chart) shows the same thing as the SPY, a leading negative as well as a divergence earlier near the highs. It appears there's a fair amount of distribution going on here when at least on a 1 min chart I would expect something closer to confirmation from short covering, but as I noted I think yesterday, the NYSE short interest has falling way off so there apparently aren't very many shorts in the market relatively speaking and those that are left seem to be strong hands.

 The 2 min chart has had plenty of time to offer confirmation and move up to price, it hasn't.

 The IWM chart s showing something close to the DIA/SPY charts.

 And the QQQ is showing the same, divergence near the morning highs and a leading negative divergence.

 The SPY again, the 1 min leading divergence is worse then the last post, it is below any 3C reading this week.

And the 2 min hart, again no where near confirmation, not even an effort. However, remember the SPY and other 1 min charts, how they had leading negative divergences, because the next set of charts should (if the reading here are legitimate) look exactly the opposite.

Here's VXX which moves opposite the market.

 And what we see in the VXX chart is the exact opposite of the market averages, a leading positive divergence. Here's a zoom of the SPY chart again for comparison.

Look at that! Nearly the exact opposite, thus confirmation of both the VXX and SPY (as well as other 3C market charts). The VXX went positive at the lows (remember for confirmation, these should be exactly opposite) and then a strong leading positive. SPY went negative at the highs and then a strong leading negative. This is why we compare, confirmation gives us the most reliable outcome.

Back to the VXX...

 Look at the 2 min chart, a strong positive divergence and even stronger leading positive hitting new local highs. When the VXX moves up, the market moves down, so signs of accumulation in the VXX combined with signs of distribution in the market are the confirmation we are looking for.

Just for giggles I took a look at the long term 60 min VXX chart, you can see the positive divergences that sent VXX higher off the Oct 31 lows, with today's drop, thus far VXX 60 min is in a positive divergence.

Other charts...

I was wondering about TLT (Treasuries) which like the VXX move opposite of the market and they have damn near the exact same signal, a positive divergence on the lows and a strong leading positive divergence since.

How about commodities?

  GCC (Continuos Commodity Index or CCI), looks very much the same.

Here's the long term view of GCC on an hourly basis from the April highs.

So Copper has been doing well the last several days...

 Here's JJC the Copper Index, not looking good this a.m. which is a bit surprising.

 The next timeframe looks worse.

Since FCX tends to be a good proxy for copper, lets take a look...

 Whoa, unexpected and has me considering a FCX short.

 FCX 5 min

 FCX 15 min

And hourly, this bounce in FCX looks attractive to me for a new short position, I'm going to be patient as it is still early and let the dust settle a bit, but FCX is definitely on my radar now.

I'm going to keep browsing and see what pops up.