Today the market was manipulated, there could be several reasons and there could be several players. For now I'm just going to stick with the previous assumption of a strong breakout for a market reversal, as mentioned regarding AAPL several times, the stronger it is, the more dangerous it is. The SPY, DIA and QQQ were all in striking range of a breakout as noted yesterday and the day before with the IWM playing catch up as it is the furthest from such a breakout.
This is ES/3C at yesterday's close. One of my last market hour posts was there was a positive divergence in ES that was likely to lift ES in to after hours )and probably overnight).
We got the gap up that pushed the Dow through the psychological level of $13k early today.
This is ES premarket today with a negative divergence sending it lower toward the NY open.
At the open there was a positive divergence lifting ES/the market.
Before the FOMC even came out, 3C was already negative in the market averages and the ES as seen above (chart ends at 2:59 p.m.).
The SPY was already losing momentum as you can see by the Rate of Change in white.
After the FOMC announcement and the initial knee jerk higher, the market started trending lower making lower lows and lower highs and breaking intraday support. (below)
Just as the market is breaking down, threatening the Dow 13k close, JPM announces the results of their stress test 2 days before the F_E_D is scheduled to release them sending the market higher.
Here's ES since after hours, right now it's a couple of points below the close...
More to come...
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