As I first mentioned yesterday in my "Gut Feeling" post which is just based on market behavior/trader psychology to keep an eye out for a bounce that can be used to short in to at better price levels as the longer timeframe charts deteriorated badly yesterday, pretty much locking in some serious damage, thus making shorting strength easier as the damage done is severe.
This morning the market seems to be following that line of thinking, AAPL will be particularly interesting as there are a lot of hedge funds holding it and only 1 door out, you know what happens when too many people try to fit through 1 door so I'll be watching AAPL carefully today as well as movements in volatility. For now, the market...
DIA 2 min has made a higher high, I was wondering about this one yesterday . However keep in mind this is only a 2 min chart, the damage done in the longer timeframes yesterday appears to me that we are at the reversal now, that doesn't mean we won't see the same typical market volatility and games, so I want to use this to my advantage.
IWM 3 min carry over from yesterday and a bit better today with a positive divergence, yet within a leading negative position, this is sort of what I mean about short term strength is almost a gift here as longer term deterioration is the dominant theme.
QQQ 2 min carry over from yesterday as well.
SPY 2 min carry over from yesterday, it seems my gut feeling was right, but anyone paying attention to market dynamics the last several months could have made the same guess easily.
Next a look at AAPL and what may be the building exodus.
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