Quick Market Update

The signals suggesting the market pulls back were obviously on to something. I suspect we have more to go, but it seems like we may be getting  little overdone on an intraday basis, I mention this because I know many of you are in trades with options that you want to keep on top of and use counter trend moves to enter exit positions.

What I'm looking for to tell me a pullback is ending would be a strong signal that the pullback is being accumulated. There are some hints, but nothing like what I would normally be on the look out for and although we have a pretty good pullback on a daily % basis, this is only day 1. The market is in the zone where it moves in extremes, but there are some hints that we may see some intraday loss of momentum. I may even look to adjust my GLD position if that's the case.

 CONTEXT for ES is showing the model more positive than ES, which reminds me I want to see how the risk asset layout is holding up in to the pullback.

 The SPY arbitrage model is also more positive than the SPY.

 I wouldn't call this a strong positive divergence in ES intraday, but it is in an area where it is certainly worth considering for the first time today.

 As evidence of the momentum in the pullback , just look at ES walk the 2 standard deviation channel of its VWAP. This is a VERY different environment today than yesterday after the F-O_M_C, remember the knee jerk reaction? Sometimes there are several, this could be a secondary knee jerk reaction-the market is CLEARLY NOT happy about the lack of any mention of QE on tap yesterday.

 The SPY 15 min is seeing an EXTREME move here, the 30/60 are still holding up fairly well all things considered.

 SPY 60 min still in leading positive positive, but today's action has moved the 60 min chart a bit.

 This may be the catalyst for an intraday respite from the downside momentum, the Euro is showing a rounding lie bottom intraday-this could have an effect on both oil and gold so I'll be watching this, it would also likely effect the broad market is the Euro rallies intraday.

 Euro 3 min showing the same.

 $USD 1 min is confirming as price is flat in the afternoon.

$USD 2 min also confirming.

This is just something to consider, I still think we have more pulling back to go, but may get a brief break. I'll have to decide if I want to close the GLD put on some intraday strength and then re-open it at the end of that strength. As many of you know, I like to spend the least amount of time possible in options.