IWM and QQQ fail to confirm thus far

As you may remember though from late Friday it was Financials that looked to be the last thread still holding on, although seeing negative divergences, Financials were holding on better in 3C trade than any of the other major risk groups.

As we have seen (I'd estimate about 80% of the time and on all timeframes) we almost always see a head fake move above a defined area of resistance or support before a reversal, typically the more important the reversal, the bigger the head fake move. This concept has allowed us to enter some excellent trades like early June longs on the head fake break lower or March through April shorts on head fake moves higher.

Here's where we stand with the major averages, all in territory above obvious resistance except for one, the R2K.

 DIA also showing the concept of high volume bullish/bearish candle reversals (again these have no target implications, just a nearby reversal that could be a day or months). The DIA above obvious resistance.

 The IWM is the only that is not above an obvious resistance level.

 QQQ above both the large bear flag and obvious resistance.

And the SPY above obvious resistance...

We'll keep watching the short term charts for hints and clues, but as you know, I'm not a big fan of early trade or analysis based on early trade, especially on Mondays as it tends to be filled with manipulative noise or "gamey" from orders from retail traders that have to head off to work.