Market Update

This congestion today is just playing havoc with the indicators, yesterday was beautiful, nice clean signals that contradicted price, excellent entries in some long positions and the move that 3C was showing so clearly.

The Euro situation is just making a mess of intraday charts. I don't think this will effect the probability of a strong move higher, but it would b nice to sustain some momentum especially going in to a 3 day weekend. I'm going to take a look at the Risk Asset Layout after this and just get a feel for what other underlying asset classes other than the Euro are doing.

Euro support/resistance/congestion and a possible head fake move below support, I'd guess a probable head fake move, but timing is still an issue.

 DIA 1 min is a bit more negative than price, but I suspect there's a lot of reaction to what the Euro is doing and if that is a head fake move, it could turn around quickly.

 DIA 2 min declined on negative divergences but is giving an ambiguous relative positive divergence now. These just aren't the strong clean signals like yesterday, but I suppose the fact they aren't completely falling apart is good and goes back to the early theory of the averages trying to maintain in the area while waiting for the Euro to catch up. If you think about today's price action, you can see why  the averages are loathe to move higher while they are so disconnected from the Euro, it would open up a very volatile, risky potential for an arbitrage move down which would be quite nasty if the averages continued higher without FX support.

 IWM 2 min looks a lot like the DIA.

 So does the 3 min, you can see yesterday's clean signal and today just looks like congestion in price and underlying trade.

 IWM 5 min

 QQQ 1 min is almost perfectly in line with price action.

 The 3 min looks like the positive current divergence in the DIA/IWM

 QQQ 5 min which is mostly in line today also shows that same positive.

And there it is on the SPY too.