First AAPL, as I said last night, this may be the single most important chart in the market right now.
AAPL 1 min, I added something to these charts other than the normal positive/negative divergences, below I added white boxes in positive divergence areas and red in negative divergence areas, when viewing them compare to where price is, what the price trend has been and what happens after. The AAPL 1 min chart has been in a leading positive overall position since Wednesday, today it is showing an intraday leading positive on the morning pullback, this "may" hit a new leading high for the last 2 days.
The 2 min chart since yesterday afternoon shows a late date positive divergence, this is almost certainly in preparation for today's a.m. gap up, as there have been pullbacks, there have been positive divergences, there are NO negative divergences on the chart.
Long term AAPL 2 min chart since the decline late Tuesday, overall a rising trend in 3C.
The 3 min chart (I don't usually use this timeframe, but 3C stands for "Confirm, Confirm, Confirm!!!" Therefore that is what I'm doing. You can see clear distribution in to the post AAPL earnings gap up, that was clear that day, since at several dips there have been positive divergences, positive divergence almost always show up in declining prices or flat areas; that's the power of 3C, to be able to contradict price alone and give you an idea of the underlying smart money action as price itself is deceptive.
The 5 min chart shows a number of positive divergences, some are much higher than today's, I have seen this happen before and although you must account for the overall average of the accumulated position, it is quite common to see price rally higher than the first divergences at higher levels.
The 15 min chart is where AAPL really comes alive, There are numerous positive from the day before AAPL released earnings and Tech rotated in on the 23rd/24th and the recent positive leading divergence of the last 2 days has hit a new high, this is very significant for a 15 min chart and has me considering a VERY speculative VERY short term options CALL trade for a possible bounce higher in AAPL. I would never consider it otherwise if this 15 min chart didn't look the way it does.
The chart is so beautiful that I'm positing it again with no annotations just so you can see it, I've only marked significant dates below.
As I suspected, the last pullback in the DIA did see a positive 1 min divergence, quite strong too, it is leading positive.
The IWM saw the same leading positive on the last pullback
The Q's pulling back to the area I was looking for, also seeing a positive/leading divergence on the 1 min chart.
The saem for the SPY, also leading positive.
So far, if we stay along the lines of one of the theories I offered on Tuesday night with regard to the market bouncing, I said the market would need to consolidate, divergences take some time to put together, it doesn't happen in a few hours. Thus far we do have a fairly tight consolidation range. The other thing would be that buying would occur or accumulation, on dips, thus far the charts have been showing accumulation on dips, when prices moves to the upper end of the range we see negative divergences sending it the lower end of the range where we see positive divergences and this pattern is repeated and repeated. The trend of this repetition of this pattern is showing up on the longer term charts like 5-15 min as positive.
That's where we are now. If I decide to take an quick AAPL long Call trade, I'll let you know BEFORE I take it.
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