Market Update

As we stand, the path of least resistance still looks to be down in to the pullback we originally expected until last week when some unexpected 3C strength manifested on Tuesday leading to late week price strength.

It's still early to make a definitive call on the pullback continuing, there's some mixed action intraday, but no real solid theme to the day, this may be because of some trepidation before the Bernie Congressional testimony tomorrow.

 As for daily price candles, today's price formation thus far is a Harami reversal, you can see what the previous 2 Harami reversals did, both working. There is no target or measuring implication with a Harami reversal or what we call in the west, an "Inside Day".

 The SPY 5 min chart still looks very much like the upside move from late last week has run out of steam.

 The 15 min chart has a negative divergence, but it's not huge. This could be interpreted several ways, 1)the pullback may not make as deep a low as first thought, 2) there may be more consolidative chop within a pullback or even 3) There's still room and time for the market to turn this around.

 The DIA 5 min is one of the charts that is acting a little better a the day goes on, if it really improves, this could bleed over to the 15 min chart.

 The 15 min chart again doesn't have a horrible negative divergence, but it is enough to turn the market down if it doesn't see improvement soon.

 IWM 4 min is more or less in line today which is better than being negative so we'll have to see how this develops-the key to today and near term analysis of the next move continues to be the 5 min charts.

 IWM 15 min chart looks more definitive for a sharp pullback, but the IWM and QQQ have been lagging the DIA/SPY for about 2 weeks now.

 QQQ 5 min contrasts with the DIA 5 min, intraday it has stayed pretty much in line, but hasn't been able to move out of the leading negative divergence from Friday.

15 min chart, it's more than enough to turn the market down in to the pullback we were expecting.

We still have several hours of important trade so I'll keep an eye on these.