Market Update

I just wanted to provide some perspective as it looks like we will get a bounce, however there are times when even Wall Street loses control of the market like in 2008 and bullish signals are useless.

 The earlier positive divergence caused the market to lose downside momentum and go in to a consolidation, a 3C positive divergence doesn't always mean a bounce, it can mean a simple consolidation like this, but I would prepare for a bounce as it has been a fairly strong day especially in the Russell 2k at -2.65% -remember this was the thesis behind my Santa Rally video, weakness in small caps doesn't bode well for a Santa Rally. In any case, a bounce would be normal and actually healthy so the market doesn't get oversold and keeps nice steady downward pressure on the market, parabolic moves in either direction are not good for the trend.

 The 5 min remains in line and leading negative so if we get a bounce,  wouldn't panic, but use it as a tactical entry, I know it is emotionally hard to short strength, but it is also the least risky way especially in the environment of multiple 3C timeframe confirmation.

Look at this 30-min chart, it's leading negative and has lost all gains in 2 days, this is incredible as it hits new lows! So the bigger picture is very negative, any short term strength should be viewed as an opportunity.