Market Update

I suspect this will be a fast moving day, I may be slow on the emails as you know what I'm watching for.

I have reversed the order of the charts from longer 2 min charts first to uncover noise and 1 min charts second. The theme I see is the market was artificially lifted on Italian debt auctions that weren't fundamentally strong, they were the opposite, but the market is using the fact they even could sell debt outside the LTRO 3 year window as a ploy to celebrate. The other mover is SPX $1400, which is nothing more than a pure psychological benchmark as it is a centennial (whole number) that the human mind gravitates toward. Just look at the super market, the $3.99 milk is 1 cent cheaper because $4 seems a lot more expensive than Three-something. There's a reason and method to understanding the human mind's gravitation and $1400 SPX was purposefully and thoughtfully my target for a reason. Lets see what happened on the gap open...

 Remember the 2 min (longer intraday) charts are first, the gap open saw an aggressive negative divergence, again the theme for the last several months has been to sell in to any strength.

 A very slight positiv divergence on the lows.

 IWM again with a strong negative divergence on the gap up open

 And a small relative positive divergence at the intraday morning lows.

 The QQQ saw a strong leading negative divergence on the gap open.

 and a little stronger than the other averages, positive 1 min divergence at the lows.

 The SPY with the 4th strong negative  divergence on the open

and on the 1 min chart a positive divergence at the lows.

This is very consistent throughout. Strength is being sold and in this morning's case, quite aggressively being there wasn't that big of a gap up.