Wednesday, February 22, 2012

Quick Market Update

I suspected the earlier losses wouldn't hold all day, the market needs to create movement to make money and the fact the Q's didn't confirm (Dow Theory) strengthened the case for a move off the intraday lows.

There are a ton of indications I still want to look at, volatility, risk assets, treasuries, etc because until they are ready to really let this crack, they don't want to lose the "buy the dip" crowd, which I wouldn't be surprised if the term was created in Goldman Sach's propaganda unit, it is certainly useful in conditioning traders.

 DIA 1 min went negative around the 2 pm reaction highs and is leading negative.

 The same is true of the 2 min chart...

 The IWM has pretty much been in line except for a small positive divergence earlier at the lows.

 The 5 min chart though is still exhibiting some relative strength, it may not have caught up yet or as I said, until they are ready to let this really crack, they'll want to keep the buy the dip crowd and sentiment bullish.

 The QQQ 1 min has been pretty much in line with trade. Note what looks like a possible small positive divergence forming.

 The 2 min chart, as I suspected bounced off the larger relative positive divergence mentioned in an early update.

 Again the 5 min chart is not negative and still holding up.

 The SPY 1 min

 SPY 2 min and leading negative

The 5 min is in line.

It is because of these 5 min charts I want to look in to this further.

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