Last week we had signals that there would be a market pullback, BEFORE the F_O_M_C. What I was looking for and hoping to see were positive divergences in to the pullback. The pullback last week seemed pretty short in duration, although it was pretty sharp.
Basically this morning's update confirms or is confirming what I expected and hoped to see last week before the pullback even started, or in other words, in to this morning's gap down, the signals I was hoping to see indicating positive divergences in to the pullback, are materializing. ES showed a positive divergence in the last post, but these charts are more complete.
DIA 1 min didn't even move to confirm the gap down this a.m. thus leaving this chart in a leading positive position.
DIA 2 min shows some weakness heading in to Friday's close and a positive divergence building this a.m.
The 5 min chart also shows the divergence for the expected pullback and a leading positive 5 min divergence, this is the kind of signal I was hoping to see.
IWM 1 min has not confirmed the downside move this a.m. and is in leading positive position.
The IWM 2 min chart is in leading positive position this a.m., also note the negative divergence that was part of the pullback signal.
IWM 3 min with the negative divergence over a longer period, suggesting the pullback I expected, the current position of 3C is leading positive this a.m.
QQQ 2 min did not confirm the gap down and is in leading positive position.
The 5 min showing the negative divergence for the pullback and a leading positive right now hitting new highs.
The SPY 1 min makes the 4th of the averages that has not confirmed the gap down, leaving it too in leading positive position.
The 3 min chart with the pullback signal and a leading positive chart this a.m.
Finally the 5 min, also leading positive with the pullback signal also visible.
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