SPY Update

This is a larger update than usual, hence why I'm just covering the SPY (6 charts vs 24), but it should give you a feel and some perspective on the intraday, the near term action and big picture.

 SPY 1 min you can see where it went negative earlier today, I think this is mostly because of the Euro moving in the opposite direction, all things considered I'd still call the market strong here when comparing where the Euro is today. We have what looks to be a positive divergence forming, remember my earlier post, early gains are hard to hold and the afternoon trade is usually much more important.

 The 2 min chart is here just for confirmation of the 1 min and it confirms the same findings.

 The 5 min is a little leading negative after having been leading positive, but just looking at this timeframe alone, the positive divergence is much bigger than any negative action.

 The 15 min (which if zoomed out to show the trend is also in a leading positive position and has been for a while) is strongly leading positive and hasn't been effected at al today. As you can see, the 15 min chart can move a lot in one day when there is strong underlying trade, the fact it hasn't moved to the negative even a little speaks to the path of least resistance-a strong market move up.

 Even the 30 min shows a positive divergence that is quite large, remember when the market was moving down I reminded you that accumulation doesn't take place in a day or even a couple of days for a strong reversal move, it takes time and the 30 min chart illustrates that, but is it too strong? Does it damage our long term market perspective (bearish)?

Judging by the SPY daily chart's leading negative divergence, I would say the answer is a resounding no. The positive divergence seen at the left is the October lows and that market rallied hard off those lows, the distribution/negative divergence is much bigger than the positive divergence that gave us an almost 8 month uptrend.

Basically not much has changed in the analysis.

As for QE3, I would think we'd see a pretty strong positive divergence if someone actually had the inside track on that becoming a reality. Thus my earlier comments, "I doubt GS themselves even know", in fact, I doubt very much the F_O_M_C even knows at this point. This is a sensitive topic in an election year.