Quick Market Update

All over, whether averages, ETFs or momentum stocks I see one thing today that ties them altogether, they are all above very obvious resistance. For newer members that may sound like a bullish thing, for members who have been around and seen it on every time frame, you know that approximately 80% of the time, major trend reversals end with a head fake move (in this case above resistance, for an upside reversal below support like June 6th). If 3C were confirming or leading positive at these areas, we would assume they are true break out moves, but with the negative divergences we have seen so often on similar moves, the probabilities are a head fake move and that is one market behavior we have found to be an excellent timing indication, even though the stronger the head fake move, the stronger and faster the downside reversal as a general rule.

Here's a quick look at the 5 min charts today in the majors...

 DIA with last Thursday's accumulation, that was the same day GS put out their FREE long Euro call which is the same as saying "long the market". Is it just coincidence that the same day we saw heavy short term accumulation as we were just below those very obvious resistance levels everywhere? There are a lot of reasons for a head fake move before a reversal, we'll talk about that later.

 QQQ 5 min longer term chart.

 QQQ 5 min negative divergence, compare to Thursday's accumulation zone.

 SPY 5 min trend...

The SPY 5 min chart doesn't even show accumulation, compare to the leading negative divergence in place, as well as the flat intraday trading range.