Opening Indications

Looking Good... For opening action which is not my favorite as it is heavily manipulated to take advantage of piled up stops and limit orders.

Here's the migration of the negative divergence rolling through the timeframes of the SPY as we saw begin on Friday, then the 30 min chart, you can think of the first 4 charts as the gauge of short term action, were it reaches it's breaking point as we can use any price strength to short or sell longs in to, the last chart is the more important 30 min trend, this is kind of a map of what has happened already and how things look moving forward or the strategic outlook, it looks very bad, this is why I WAS NOT fond of trying to ride a bounce and rather short in to strength as the 30 min is where the probabilities are so I'd rather align short term trades or tactical entries with the probabilities. Remember "PRICE IS DECEPTIVE".

Using the SPY as a general barometer.

 The 1 min chart negative and especially on the open.

 2 min leading negative, this is what started Friday, very soon after the divergence which is unusual as they usually mark up price a bit before starting distribution.

 3 min from the positive divergence and already moving negative

 Even the 5 min , which is where this should all break as this gets uglier, leading negative.

 Here's the 30 min chart, this is like the road map, vet leading negative, the yellow area is where I think we will look back and see this area as the pivot.

The DIA

 Almost as soon as the downtrend line was crossed, the 1 min chart was going negative, this would have been the first technical level bulls would look for price to move above.

 The 2 min chart-last week's positive divergence, already leading negative

 3 min negative on the open, badly.

 This is where we want to see the 5 min in all of the averages break down, right now its pretty close to in line.

 QQQ 1 min is surprisingly weak with a deep leading negative. I'll look closer at AAPL, but I suspect there are some major breadth (advance/decline) issues there.

 QQQ 2 min leading negative, very ugly for this early in the move.

 The 3 min is not only leading negative, but really nasty on the open today to a new low.

 The 5 min is just going lading negative, this is exactly what we expect to see and want to see, it gives us reason to short strength in price.

 The IWM / Russell 2000 has been by far the strongest, the 1 min is leading positive intraday so watch that for an intraday move, I'd rather see it in the morning.

 IWM 2 min is leading negative, really bad on the open

 As is the 3 min

And now the 5, this is good.

I'm moving locations, it should take about 10 minutes to be set up an running, it's a faster connection and is working again now.

Take a look at USO, nice weakness there this a.m. I already have an equity short there, I'd like to see some price strength to open a Put.