3C Market Update

I've included several different timeframes from short to long, the theme should be pretty clear.

 DIA short term 1 min never confirmed the gap up today as shown in the opening post this morning, but worse yet, it is leading negative quite sharply today in the red box. There has also been a larger negative divergence across a flat trading range in the DIA (remember institutional money, whether accumulating or distributing is usually doing it in flat ranges that are pretty quiet-volume was unusually low yesterday which is another hallmark of institutional activity).

 Here's the longer term hourly chart, which carries much more importance regarding the longer term trend. If you follow each of the positive (white) and negative (red) divergences, you will see how they effected price, sending it higher or lower, but the overall trend has been very negative with the DIA leading negative as 2011 closed out and the New Year began.

The Russell 2000 / IWM has been on my radar as few people realize this may be one of the most important averages to follow, it is Bernakacide's choice when trying to illustrate the "Wealth Effect" in Congressional testimony. The Russell 2k lost -7.22% last year and was the basis of my video post that we would NOT see a Santa Claus rally at the end of 2011. The 2 min chart shows what very much looks like a head fake move today as it also leads negative.

 A little longer term/bigger picture perspective shows this choppy range bound market under a large negative divergence which is leading negative today.

 With 15 min chart I have not identified every divergence, but rather focussed on the main ones, like the October rally positive divergence and the more recent negative divergence which is also leading negative.

 The hourly chart covers some of the main trends from QE2 starting to the top, the recent activity is also leading negative on a 60 min chart.

 QQQ 2 min, the short term chart shows again no confirmation today and in fact a sharp leading move down in 3C, this among a larger negative divergence trend.

 The 15 min chart again showing the broader trends as well as a very nasty leading negative divergence. There is a clear transition from relative negative divergences which are bad, to leading negative divergences which are the worst.

 Here's another, but on a more important 30 min chart.

 And finally the long term 60 min trend covering Jan. 2011 through present, the trend should be quite clear as it moved through the 2011 top area and currently is near the worst leading negative areas.

 SPY 5 min relative negative divergence through a flat trading range leading to a negative leading divergence today.

If you recall the wedge on the S&P-500 chart, you can make it out in price, there's nearly a mirror opposite negative 3C trend moving lower as price moves higher.