Market Update

So far High Yield, Financials, Rates (especially), and the Euro correlation are all still underperforming the market. Only commodities have aught up and that seems to be specifically due to the 1.56% gain in crude due to the Iranian/British diplomat hostage crisis that erupted today.

The SPY is VERY close to filling the gap that we had been watching last week for a bounce.

What's left of the gap is in yellow on this daily chart.

 The SPY deteriorated as sen earlier and as I just mentioned, hit some support and got a brief lift off that support on the 1 min chart you can see the area in white.

 Here's a closer view of the same chart.

 The 2 min chart remains unaffected by the support level and continues to fall in what is now a very sharp leading negative divergence between the two relative price points of 11/22 and currently which is actually higher.

 The 5 min chart also is looking pretty bad on this bounce.

 The 10 min chart really tells he story though and I'm glad I added shorts yesterday, if we get some strength I may add more today, I've just been too busy to do that thus far.

 The DIA 1 min did show the bounce, the same as the SPY, but since has taken to a the start of a leading negative stance.

 The 2 min chart looks pretty bad here and appears to be pretty much what I thought yesterday, a fluff bounce that is a good opportunity to look at adding to existing short positions or new ones.

 The 5 min chart looks very bad as well. The gains in the SPY/DIA today are paltry.

Moving to the QQQ, the average is down around -.70% so it is underperforming the S&P by a pretty wide margin.

 The short term QQQ 3c chart is in line with the move down.

The 5 min chart looks extraordinarily bad with a sharp leading negative divergence.