SPY/IWM

I mentioned earlier in the week the IWM tends to be the leader of risk on moves, we saw that as the IWM shaped up quite a bit yesterday. The most underlying movement today has been in the IWM and SPY...

 If you look at the IWM 1 min price chart you can see where the short squeeze momentum was in effect, as the 1 min started leading negative you can clearly see the loss of momentum in the short squeeze that started yesterday afternoon.

Adding ROC to price makes this even more clear.

IWM 1 min with ROC applied to price.

 This is the migration through the timeframes or the process of distribution, there clearly was selling in to price strength, we can't differentiate between selling and short selling, but there's a possibility there was some short term market maker/HFT short selling if we are to get a pullback Thursday as the US markets are closed for the 4th of July.

 The 3 min in the IWM. It would be interesting to see how this would have played out during a full day, if the negative divergences would have grown worse and if the migration would have continued. I suspect it would have. Thursday's very fast accumulation is still in my mind and I think it can't be separated from this move since. However, I have the gut feel that if the short squeeze were to continue this Thursday, we wouldn't have seen an event and very quick strong accumulation, but rather a process with longer duration (thus a larger institutional long position).

 SPY 1 min leading below yesterday's readings

 SPY 2 min also leading below yesterday's readings.

SPY 3 min leading negative.

Now I'm going to check and see what happened in the risk asset layout.