I guess I can't really complain about the market direction, we saw this coming, planned for it and every position that was put together for the bigger picture in the equities only model portfolio is at a gain between +.50% on the low end to 14% on the high end with most gaining +6%-12% on a move in the market that hasn't really even started compared to big picture expectations. However I still want that chance to add to and initiate a few more positions on some market strength and the market has been stingy in giving it up.
Fundamental events are occurring that smart money for once, isn't ahead of the curve a they find out and react roughly the same time we do since the Greek elections specifically came as a surprise-why? I have no idea. I would have thought the painful austerity cuts in Greece would make election results clear and the ND and PASOK would clearly lose ground, so much for pre-eection polling, it was totally wrong.
As for the market update, we are still in the early, morning silly-time when stops and limit orders are being run and knocked out, but it's still worth an early look.
The DIA knocked out yesterday's closing candle which was a hammer and created support at yesterday's lows, they were hit this morning (traditionally the morning's have been used to run stops), however there's some momentum to the upside after the stops were hit (which provides HFT and other trading firms volume rebates so it is profitable to run obvious stop level).
You may recall the DIA was the worst looking of the averages yesterday, this a.m. we have several small negative divergences
The IWM is one of the averages that actually did hold support
The IWm had 1 small positive divergence and now a leading positive, this was the last chart captured so this leading positive divergence is a new element this morning and all of the averages are showing some version of a leading positive divergence although the IWM's is the strongest.
Yesterday's IWM action (green is price confirmation, white is positive divergences, red is negative divergence at the close), but the point here is the 1 min chart did not move down all the way to confirm price and thus has a slightly positive tone to it.
The QQQ also held yesterday's closing hammer support
You can see the negative divergence on the open and an in line, now it is slightly leading positive.
Again, compared to yesterday, 3C did not move low enough to confirm the price gap down and is in a slightly leading positive area, plus the intraday leading positive divergence developing now as the market is moving faster than I can capture the charts.
Finally the SPY did just knock out yesterday's hammer support, volume jumped right below the support level as traders still don't understand support/resistance are areas, not exact levels, I suspect there were enough stop orders visible that it made it worthwhile to run those stops.
This is today's action as of the capture, however as mentioned at last check this has started moving in to a leading positive divergence.
Again 3C didn't move low enough to confirm the move lower today and thus remained in leading positive territory.
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