Tuesday, December 6, 2011

This is what we look for in a head fake...

 The DIA which has been the most responsive today, 1 min negative divergence on the break out rally which means the expected head fake I was looking for before it even began, looks a lot more like a real head fake given the chart above.

 DIA 2 min negative divergence on the breakout of the consolidation zone, this is how predictable retail traders are and this is how predictable it makes Wall Street's reactions.

 IWM 1 min negative on the breakout.

 IWM 2 min negative at the top...

 QQQ going negative on the breakout today.

 SPY going negative on the breakout.

 USO didn't do much, but what upside it managed, went negative.

 USO 5 min, it is unreal that USO has been acting so bearishly in the Geo-politial environment and if it weren't for 3C, I'd be out of the short trade, but still scratching my head.

 XLF, a late breakout goes negative.

 So we have USO, financials and now XLK-tech, the three pillars, XLK VERY negative divergence on the breakout.

 On the 2 min, a leading negative divergence.

And negative divergence on the 5 min.

More charts coming, but it looks like we are getting what was expected.

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