Market Update

With early gains from about 1.75% to 2.20% it's often difficult for the market to hold early gains this large and we are in the resistance area of the bear pennant apex, I'd say a lot of these early gains are short covering just by the look of intraday trade with few pullbacks and none of consequence, above the apex and they should increase.

This update is a little different in that I'm showing longer charts first a they are more important and give you perspective with regard to the shorter term charts (less important, but good for intraday moves).

 DIA 15 min with a huge relative positive divergence at the break below the flag/pennant lows and a current huge new leading positive divergence.

 DIA 2 min is largely in line or trend confirmation.

 The intraday 1 min is showing a small negative divergence as we are in the area of resistance where technical traders are hoping to see a failure of the test of resistance.

 IWM 15 min with an astoundingly large leading positive divergence through the pennant area and at the lows.

 The 3 min chart has been in line (green arrow)/trend confirmation, we are seeing a relative negative divergence intraday, to be expected considering where we are, it could forma consolidation or a pullback or they may throw the bears a bone and make them think the test of resistance has failed, bringing more shorts in the market and creating more fuel for the upside as they cover at higher prices.

 IWM intraday 1 min negative divergence, just keep in mind this is a 1 min chart and remember what the 15 min chart looked like, which is infinitely more important.

 QQQ 15 min with a new leading positive high

 QQQ 3 min in line with a very slight hint of a negative divergence.

 QQQ 1 min negative divergence intraday, again remember where we are.

 SPY 5 min leading positive with trend confirmation, I don't know why I used the 5 min, the 15 min is flying in a huge leading positive divergence. You can see we are close to resistance at the apex of the bear pennant, technical traders are looking for a failure there.

 SPY 3 min is still in confirmation, no negative divergences so nothing very strong out there intraday.

SPY 1 min intraday negative divergence.

So far everything looks as I would expect, although I'd say the longer term 15 min and longer charts look even stronger than I would have expected.