Friday, September 21, 2012

EOD Closing market update

I've had a couple of questions as to what these late day divergences look like and where they are, so I'll show you, remember they are inconsistent which perhaps furthers my feeling that this market may not be hot or cold, but very specific sectors that perform well, others that fall apart and if the assumptions is correct and it is correct based on the logic I'm using, then there could be a lot of rotation between them as there would be very specific triggers that cause the rotation-inflation being one of the main ones.

In ant case, it's just a working theory for now, but subtle evidence is popping up here and there, like this...
 The DIA is NOT part of this positive late day, minor timeframe divergence, in fact its the opposite as it leads lower in a negative divergence and just below yesterday's closing, which tends to confirm what I thought yesterday, that we were being set up yesterday and through today for an options expiration related pin. However the DIA could be kept in place without the leading negative divergence unless they are trying to cause more pain in lowering it.

 ES isn't showing the positive, but it is not as negative as earlier, it's more consolidation in 3C.

 This is a stretch to call this a positive divergence in the IWM, but it is the longest 3C upswing pretty much all day. That would be what you call a VERY relative divergence if at all.


 NQ/NASDAQ Futures first alerted me, they don't tend to carry over to the next day or new week, so either they move or they don't.

 The QQQ sort of confirms the NQ divergence on this 2 min chart

And SPY 2 min shows something similar, but doesn't confirm ES.


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