Market Update Follow Up

The positive divergences are intraday, they're mostly confined to 1-3 min charts with 5 min charts remaining persistently negative, 3C translation would suggest an intraday move up, but that's about it, our pullback as the next trend (even though it is likely to be a short term trend) is still the highest probability in the days ahead.

 DIA 1 min positive intraday divergence.

 DIA 5 min still leading negative, the 5 min chart is much more important than the 1, 2 or even 3 minute charts. The depth of the leading negative divergence on the 5 min chart is also quite impressive, I'm not even getting in to the 15 min charts in which several averages are negative there too.

 IWM 2 min leading positive intraday divergence

 IWM 3 min leading positive intraday divergence-note the migration through the fastest timeframes to the more important longer timeframes.

 However, along those same lines, note that the 5 min charts are not swayed at all, the intraday divergence may look pretty good, but it's not effecting the more important 5 min chart which is still very much in a leading negative divergence.

 QQQ 1 min leading positive divergence

 The QQ divergence made it to the 3 min chart, obviously not quite as strong here as it is on the 1 min chart.

 The QQQ 5 min chart remains in a leading negative divergence. For newer members, this just suggests a high probability intraday move up, followed by the resumption of a trend lower.

 SPY 1 min leading positive divergence

 2 min leading positive divergence... The 3 and 5 min are also positive, although less positive as they enter longer term charts.

The 15 min chart is like rock to the 5 min chart's scissors, this is leading negative on a very important timeframe, we may see some intraday strength that may even be impressive (gap fill perhaps), bt don't let it fool you, remember what the longer term charts look like. That being said, the strength can be used for tactical entries, for instance a move up in the market may give you a better entry in to a position like FAZ long.