As you probably remember we had positive intraday divergences mostly in the SPY/DIA from the 1, 2, 3 and some 5 min timeframes, which is why I expected the very near term action to enter the gap down created last Friday. The 15 min chart represents a longer trend and that is one of a pullback on a larger scale.
As of this a.m., we have seen movement in to the gap, it has not been filled, I have no way of telling whether it would be filled or not, I just expected a very near term move higher in to the gap.
As the SPY has entered the gap, I expected to see the short term intraday charts deteriorate, indicating selling in to that strength, we are well on the way thus far. The DIA which along with the SPY had the best looking short term intraday 3C charts, looks very much like the SPY charts below, in some cases such as the 5 min chart, the DIA looks worse.
SPY 1 min negative on the open and moved lower from that divergence.
You can see the leading positive divergence on the 2 min chart which is why I suspected a move higher in to the gap and a negative divergence on the open this a.m.
The same is true of the 3 min chart
The 5 min chart still shows the positive divergence, at least for the SPY, I'll keep an eye on this as it could mean the SPY is not finished working in the gap, but more likely is that the migration of negative divergences in the shorter timeframes simply hasn't made their way to the 5 min chart yet.
The longer term trend of the 15 min chart with a leading negative divergence is why I suspect a solid pullback in the market.
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