Market Update

After looking at the major averages I'm struck mostly by 1 thing, last night it didn't look very good for the market, in fact I'd say most traders would have expected today to be down 3+%. Even though it looked very unlikely, I took the time to point out how the increasing amplitude in the swings still made it possible for the market to make another upside attempt.

What really surprises me today after looking at the charts is that there isn't the kind of damage I would logically expect from yesterday's events, however I posted the possibility the market can still make a swing to the upside because I have found over the years that the market rarely follows logic in the short term, that is one of the reasons I believe some of the smartest people in the market are often the worst traders, you can't outthink or outsmart the market. For a good example of this, just read the story of Long Term Capital Management , this was the hedge fund "Dream Team" with some of the smartest guys in the market.

Today's market update...

 DIA 1 min trend

 DIA 3 min

 DIA 5 min-the DIA doesn't have a very strong trend, but it's fairly consistent.

 IWM 1 min with Friday's strength of a leading positive move, thus far, somewhat surprisingly there hasn't been any damage to this very short term version of 3C.

 A closer look at the 2 min chart, again Friday's leading positive and recently a leading positive developed in the last hour or so. The IWM looks a lot like a triangle today right around Friday's close (resistance).

 The only other important chart for the IWM is the 15 min which is mostly in line on this chart, except recently it has stayed in a leading positive position, confirmation would see 3C much lower.

 QQQ 1 min, I have shown you many time how large volume spike often lead to short term reversals, this applies to nearly every timeframe. Technical traders have long assumed that these large volume spikes were smart money selling, but smart money is a little too smart than to show the world what they are doing. We have seen it many times, distribution is usually in to higher prices or a flat range that is near some highs, it is typically a quiet event that is underway when traders would least expect it.

 QQQ  1 min showing Friday's strength and another recent leading positive divergence like the IWM. There's also an ascending triangle in place today, again right at resistance from Friday's close.

 A closer look at the QQQ 1 min chart, it looks like early attempts to move above resistance were pressured back down (remember the range I mentioned in a previous update?), and the recent leading positive move .

 The 2 min is not as strong as earlier Friday, but is maintaining a positive trajectory.

 The 15 min showing the Tech rotation on the 24th, selling in to those highs and the Q's in a leading positive area, the blue arrow is where 3C would normally be on confirmation of the move down. Many 15 min charts look like this.

 SPY volume surges, the last was a reversal, I drew in a potential close for the SPY in white which would be a bullish thrusting reversal.

 The overall 1 min trend is positive

 A closer look at today appears to show another ascending type triangle just below resistance, these triangles can be thought of as a coil/spring under increasing tension until the pop and price moves.

 2 min chart showing Friday's strength and it ha continued trending higher today.

The 5 min chart, green is price confirmation, red is distribution, white of course is positive divergences, the 5 min is now leading positive over the last 2 days.

The 15 in chart in the SPY is not significant really compared to the others.