Market Update

 This is Financials, all of you probably remember me complaining yesterday about "Mushy" signals, not the kind of signals that stand out and those are the ones that really are where the probabilities are, some of you may also recall in the past that I have mentioned, "Often we need movement to get signals", this isn't a deficiency in the indicator, it's simple market mechanics. If you are a hedge fund manager and have a 10 million shares position in AAPL you want to move, but AAPL has stayed in a range of -0.14% for a week as it did between 8/6 and 8/10, you can't do much with those shares. Just try putting out a 10k block and see how price gets knocked against you, but when you have movement that brings retail and others in to the market, you have options, when you can trigger limit orders on a "conformed breakout" you have volume to work with, when you can run stops, you have supply and volume you can work with and this is why movement creates signals (in certain market stages this is not true, such as a trending market that is confirmed). Look at yesterday's signals in XLF compared to today's, mushy vs definitive.

 Financials 2 min, mushy vs definitive.

 Energy looks to be starting it's turn intraday- 1 min

 Not much strength behind the move as you can see on the 2 min which did not see any migration from the 1 min, this is market correlation and FX arbitrage or correlation.

 Tech making a very clear signal as opposed to yesterday's.

 Tech 2 min, again, no migration of the 1 min chart, no support for the move, just market correlation which is running as high as I've EVER seen it.

 DIA 1

 DIA 2


 ES making a new leading low

 IWM 1

 IWM 2

 QQQ 1

 QQQ 2-notice the same theme on all of the charts...

 DPY 1

SPY 2

The theme is market correlation, nice price strength, almost ZERO underlying strength.

The Euro will probably be one of the key assets to watch today, at least it appears to be the catalyst, however still remains severely dislocated from the SPX.