Market Update

Last night I suspected we'd see a bounce today based on the huge amount of decliners vs advancers, it's a sign of short term oversold and by short term I mean a day or sometimes less. When we see large dominant price/volume relationships, it often depicts the same, short term overbought/oversold. The market has been very diligent about filling gaps so it's not much of a surprise, although it looks like this is all being sold in to price strength.

The gaps left open..

 DIA

 IWM

SPY

 DIA short term 1 min still looks the worst today as it seems to be seeing increased distribution as it nears the gap.


 The weakness is now filtering in to the 2 min-remember yesterday and early today we had no signals as the market/3C were in line, now that is changing.

 DIA 5 min is now seeing the weakness filter in. In red it looks like resistance at a distribution candle.

 IWM from in line to a leading negative divergence, it's good to see the "in line" era passing.

 IWM 5 min is seeing the weakness as well in the form of a leading negative divergence

 The Q's have been the strongest thus far in underlying trade-think AAPL not having broken that support yet. However the negative divergence is now showing up.

 SPY 2 min, no longer in line and negative

That is starting to filter in to the 5 min.