After about a 3 week large positive divergence (almost a month if you count the positives from May 7th to the 15th or so) and after 2 days of improving leading indicators and solid 3C signals, it looks like we are finally on the verge of what could/should be a stunning upside move.

Here's where we stand tonight...

 ES is moving higher, 3C doesn't look bad.

 Since the close the Euro has moved higher with good momentum, making this 2+ days of upside.

 Here is the opening of FX the previous Sunday and yesterday, the trendline is the area I posted earlier today where a Euro short squeeze would likely take effect, we are very close and at this pace could hit it tomorrow.

The SPY bear flag/pennant, we knew there would be a head fake move, we got at least 1 and I suspect the break of the 200 ma yesterday was the second. The size of the positive divergence often is correlated to the size of a head fake move, remember a head fake move is used as a primer to get the market moving initially on short covering. Today's price action did not fall apart as most traders thought once the 200 was broken, instead we saw a bullish hammer (reversal/support ) candle form today. With the leading indicators gaining momentum, the 3C divergences being positive in to the head fake move (exactly what I had hoped to see with a downside move last Thursday that never materialized), this is exactly the confirmation I wanted to see, I couldn't ask for better.

News is pretty quiet except right around the close, Egan Jones downgraded the UK from AA to AA-, yet the Euro held up very well, no so on Egan Jones last sovereign downgrade last week, can you guess what the difference is now? Two hints... 3C and leading indicators.

OK, I'll come right out and say it and my long term members know this is true, Wall Street controls the near term cycles, they plan them and execute them.


I'll update again if anything interesting happens.