Since the update in which I told you the 1 min charts went negative at the QQQ gap fill, the DIA has seen a strong leading positive divergence. The DIA has looked the worst in underlying trade, therefore I think it has the most to make up for.
The 3 min chart is now forming a trend, something we have been lacking recently and making the market very foggy.
IWM 1 min went negative as mentioned, it is starting a decent leading positive on the intraday 1 min chart.
The 3 min is also forming a trend, keep the look of the price trend in mind on these charts.
QQQ went negative at the gap fill, it is starting a slight positive, based on the other averages, I'd expect it to increase.
The QQQ 15 min trend has remained positive and keeps growing.
SPY 1 min also negative at the QQQ gap fill and a positive divergence starting on the pullback-this is what I was looking for if you recall the earlier post.
The 5 min is forming a trend, keep price action's shape in mind.
A few days ago I showed you a chart like this, I showed how the daily range (volatility has been increasing) and the amplitude of the swings increasing.
"If" we are to see the one last swing up that I have been hoping for, the market trend would suggest it would have significant amplitude and would be a significant move up, there's no reason to run a shakeout move if it is a half measure and in-effective is squeezing shorts and getting bulls on board (even if to only trap them).
Being the move would have to have significant amplitude, there's almost no chance of a "V" shaped reversal, this is why I asked you to note how the 5 min price charts looked like.
A reversal that is strong enough to move high enough to make it worthwhile cannot happen on 1 or 2 days of accumulation and it would need to be "U" shaped.
So the question in my mind is, "Are we seeing that U-shape as the mid-term charts are starting to show a trend?"
"U" shape?
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