OPENING INDICATIONS

Early this week, as pointed out in this post last night regarding our early week target areas for the SPY, we had strong short term timeframe positive 3C divergences, this is what led me to believe the market would see a move higher, albeit brief and essentially noise within the trend which I believe is a pullback and a fairly strong one.

Last night I noted that the fast intraday timeframes of 3C that had been so positive early in the week that we came up with a target that was hit yesterday, are now deteriorating. I'm of the feeling that this noise bounce up, that I felt was to confound the greatest number of traders (again explained in last night's post), is on its last leg and should be reversing soon.

The opening indications seem to point in that direction, just keep in mind that the IWM was the strongest looking yesterday and looked like it would move the market higher in afternoon trade, which it did, so it still looks a bit stronger than the other averages, but not as strong as yesterday.

The first chart will show you the change in character from the start of the week until now, all 4 averages show the same, you can see how the IWM was a late bloomer.

 DIA from the start of the week until now, note how strong the positive divergence was on this 1 min chart, this is the basis of what formed our analysis for near term trade and targets.

 DIA 1 min close up of the opening indication, an even deeper leading negative divergence.

 The 2 min in a large relative negative divergence, while leading divergences are more powerful than relative divergences, the power of a relative divergence is largely determined by its size, this is fairly big for the timeframe move we are looking at.

 DIA 3 min in leading negative position.

 The IWM was a late bloomer, it didn't see the same the same move up, in fact it underperformed the DOW (+1.87 vs 2.73 from Tuesday's close until present-the IWM should lead risk on moves)

 IWM 1 min close up showing yesterday's mid afternoon positive divergence I mentioned yesterday, a relative negative divergence on the open.

 IEM 2 min chart in leading negative position, I'll be watching the 3 min chart closely to see if this migrates quickly to the 3 min chart.

 IWM 3 min with a strong positive divergence yesterday and currently in line.

 QQQ 1 min trend for the week

 QQQ 1 min close up with a leading negative position.

 QQQ 2 min chart in line

 QQQ 3 min chart at a relative negative divergence.

 SPY had a large positive divergence earlier in the week, that has now gone negative, this was well on its way to starting yesterday as I warned we should be watching for negative divergences in to higher prices or "selling price strength."

 SPY 1 min close up with a large relative negative divergence, this could actually be considered leading negative.

 The 2 min chart is in a leading negative divergence on our open , a lot of damage came from the negative divergence in to higher prices.

SPY 3 min is in leading negative position.