Market Update

The most recent chart captures are the IWM, QQQ, DIA and the SPY was captured first.

 DIA 1 min did not confirm the open, there was a slight positive at the reactionary lows after the 10 a.m. data release.

 The trend of the DIA 1 min was quite negative Friday, but this is still only an intraday chart.

 The DIA 2 min made an effort to confirm but still wasn't able to confirm the open, again we see that intraday positive at the reactionary lows after the 10 a.m. data. The divergence isn't very big and we'll have to see if a subsequent positive divergence can be put in.

 The longer 3 min intraday also did not confirm the open so it isn't surprising the market drifted off the early highs, despite the data as the divergence was in effect before the release.

 Only the longer term 5 min chart is in confirmation which tends to fit with Friday's idea of some backing and filling today as the negative divergences are on shorter term timeframes here and were not able to reach or migrate to the 5 min chart as thy were not strong enough, at least in the DIA, the 5 min chart also did not see the early positive divergence after the data put in a reactionary low because the positive divergence was not strong enough to migrate to the 5 min chart. This will be a key chart to follow today as far as a intraday movement goes for the rest of the day.

 The IWM 1 min also did not confirm on the open and was in a negative divergence

 The same for the 2 min chart

 The 3 min chart was also negative on the open, which is in line with expectations from Friday for today's market activity.

 The one chart that is a bit disturbing is the IWM 5 min which is clearly negative and the IWM tends to be a leader in a risk on or risk off move.

 The QQQ 1 min like all the others was negative on the open and did NOT see a positive intraday divergence at the reactionary lows after the 10 a.m. data release.

 The QQQ 2 min chart also did not confirm the move up on the open as it too was negatively divergent.

 The QQQ 3 min was also negatively divergent, but note how the 3 min which is stronger than the 1 and 2 min, does not look quite as bad.

 The 5 min is in a similar situation, it was negative on the open, but the divergence of the 1 and 2 min charts did not migrate as much to the 3 and 5 min charts, thus the reason I suspected some backing and filling, but not a deep negative divergence.

 The 1 min SPY was in line, not positive, but in line with price on the open and showed a positive divergence at the reactionary lows from the 10 a.m. decline.

 The 2 min is also in line or confirming the price trend this a.m.

 The 3 min shows the same.

Only the 5 min which I showed you last night was negative on the open as it saw a negative divergence Friday, but it did make an attempt and saw a positive divergence at the reactionary lows.

We'll have to see how 3C reacts in the a.m. range, as you know I'm not a fan of reading too much in to morning trade, especially on Monday's as there's a lot of game playing with limit orders and such.