Market Update

Thus far, EVERYTHING is going according to plan.

In last night's market wrap I expected to see a few things, 1) a gap up opening based on ES holding up overnight which happened, 2) the continuation of the recent intraday trend-early morning dollar strength dropping the market a bit and afternoon dollar weakness lifting the market and 3) distribution /negative divergences throughout the market in to any strength.

Thus far everything has happened and now we are moving toward the time the market sees a afternoon bounce after the EU close. I'll want to see continued negative divergences in to that and may have to enter some short positions earlier then I'd like just because I'll probably be too busy later.

Also recall in the market updates of the last two days I have consistiently said the positive divergence for a bounce in the market looks the weakest in the QQQ, look at the major averages today, the QQQ is the weakest, just around unchanged while the SPY/DIA are up nearly .50%

Here's what the market looks like thus far, which confirms the last ES update.

 DIA 1 min negative divergence leading lower through any intraday strength.


 The DIA 2 min which had a pretty nice looking positive divergence, a consistent negative divergence all day thus far.

 DIA 5 min, this is where the 1 and 2 min chart divergences accrue, it is leading negative below the level in which the positive divergence for a move up even started!


 IWM 1 min negative right off the open and negative in to the intraday move higher.


 IWM 2 min also negative on the open and leading negative at the move higher.

 IWM 5 min negative divergence

 QQQ 1 min negative , it looks closer to inline, but inline would see 3C higher near the spike where the last red arrow starts.

 QQQ 2 min negative on the open.

 The 5 min chart  is more in line with price.

 SPY's move up in 3C is over, a strong relative negative divergence.


 SPY 2 min negative

SPY 5 min negative