SPY/ES Update

Here's a quick look at the so far subdued, knee jerk effect.

 ES has been negative almost all day, I did mention the slight positive divergence in ES BEFORE the policy statement, since then ES has hit intraday resistance and is starting to lead negative again.

 The pre-announcement SPY 1 min positive, there is a slight negative in place, we want to watch this to see if it is only a brief consolidation at resistance or the start of a more negative trend. The intraday positive divergence is enough to move the market higher, but it did occur BEFORE the policy statement. It may be all Wall Street getting set to run a quick cycle and have nothing whatsoever to do with the policy statement. This is probably one of those times when listening to CNBC and how they are feeding the policy statement for retail consumption, makes sense. In my view, CNBC is just the propaganda arm of Wall Street.

 The 2 min is still positive and intraday, leading positive. Again, what happens on the 1 min chart is crucial here to the near term. The 1 min slight negative is so new that it would not show up on the 2 min yet, that is why determining whether it is the start of a distribution move or just a consolidative move near intraday resistance is key to the short term.

The 5 min seems to indicate that price strength is under distribution. It is entirely possible to move the market higher from the 1-2 min positive divergences while price strength is sold in to which would be reflected on the 5 and maybe even the 15 min chart.

There are too many variables at the moment until Bernie speaks to judge which way this is going in the short term, I don't see any reason not to add to shorts on price strength at this moment and as of now, that continues to be my plan of action, albeit I am not looking to take on huge positions, but rather build them as the information warrants.