Market Update

Here are the opening indications, I believe that last move was a simple technical move to fish for stops. We can expect a lot of volatility this week, hopefully it will open some opportunities.

  All of the averages, such as the DIA above, opened on a positive divergence on the 1 min intraday chart, we saw this reflected in ES before the open, that last move higher as you can see, was in to a 3C intraday negative divergence, thus I believe as it was an area a lot of buy to cover stops would have been, it was an easy mark to take out.

 The DIA 2 min is confirming the negative divergence on that move above SPX resistance.

The IWM was negative intraday on Friday's close, positive on the open then this a.m. in line at the green arrow and went negative on that move higher.

 IWM 2 min seems to confirm.

 QQQ positive divergence on the open and a relative negative on that last move.

 The 2 min chart confirms.

 SPY positive on the open and negative in to the run above resistance.

The 2 min SPY chart confirms.

Now we'll have to see if we get a pullback or consolidation, some of the 2 min charts have deep enough intraday divergences that they look more like a pullback, in which case the stop hunting would make perfect sense.

***Keep an eye on our secular long favorite, UNG, it looks like it may be on the move again today.