Financials

Financials have been one area that seems to have held up better than other important industry groups, as a matter of fact, last Friday I said that the market was hanging on by Financials and I've been monitoring them since.

Here's the updated charts, they are, I believe, sufficiently ugly enough here to cease support of the market.

 Financials didn't really break above resistance until today, there was some intraday probing yesterday, but today was the solid break-look at volume today.

 The important 15 min timeframe, it's almost a crossroads in 3C analysis. We have seen plenty of smaller negative divergences send financials on volatility runs that have driven both longs and shorts crazy (throughout the market), but this is the first time we have a real deep leading negative divergence at these kinds of price levels with the "head fake " component in place. I'd dare say this is the ugliest divergence on this chart.

 Intraday timeframes, the 2 min has shown several divergences moving financials intraday, again this is the deepest leading negative divergence and in flat areas each time the divergences get worse (flat areas of price action are where we often see institutional activity).

 The 3 min with a relative negative at the left, a leading negative in the red box, we see some movement with price and a divergence now within the leading negative divergence.

The 5 min leading negative divergence on an important timeframe. I'd think Financials are very close to a break lower.