Quick Market Update

In this morning's first post, I said this with regard to today's market action,

"The market overnight has been pretty quiet overall and will probably remain somewhat quiet as the market waits for Bernie's semi-annual Congressional Testimony tomorrow."


Thus far that's what we've seen, but there is an ascending triangle forming through intraday trade today that I'd think everyone notices on such a dull day. With many indicators pointing toward near term downside, the bullish nature of this triangle could very well lead to a set up trapping some technical traders, especially if it breaks out to the upside and then moves lower. Today it seems that even when the market looks like it is doing nothing, it is still up to something.

 SPY 1 min chart inside the bullish ascending triangle, this bullish triangle could trap longs on a move lower. The 1 min chart hasn't done much of anything of note today.

 The 2 min chart is in leading negative position, it hasn't done much on an intraday basis, but the fact it's at a second day in a leading negative position would tend to argue for a move to the downside as we have seen in several different assets.

 The 5 min chart's negative divergence

The 15 min chart's negative divergence isn't that bad, so some of the charts such as the Euro/$USD that suggested a quick move down seems to be in line with what we see here.