Market Update

To me it looks like we will see a short term move up soon likely followed by a larger move to the downside or a new low. Price has been moving down the last few days in a very linear way, not the norm for the market in which you have waves, even in a downtrend, I suspect a move to the upside will form one of those waves.

We'll take a look at GLD next.

Here's a look at the other averages and what ES looked like when the DIA had a sharp intraday 1 min 3C down turn, pretty much only the DIA and ES had a signal like that.

 ES (S&P e mini Futures) also saw a 1 min fast moving negative divergence that pulled on price a bit.

 As for the IWM/Russell 2000, the 1 min chart clearly shows yesterday afternoon's positive divergence, as the IWM puts in a consolidation triangle, that positive divergence continues to build, I'd expect a pop up out of that triangle short term.

 The 3 min chart shows a cleaner version of the same positive divergence in the IWM.

 At 5 min the positive migration starts to fade, there is a relative positive divergence within a larger leading negative, so I'd look for a move up, which at this point is just part of normal price action, it rarely moves in a straight line. With volume low this week, moves have the potential for exaggeration as we saw in Crude yesterday (although that had more to do with manipulation and relatively huge volume coming in to that market-still low volume can make for higher volatility.)

 The bigger picture 30 min chart in the IWM is interesting, I don't even need to count the relative negative divergence from the 7th to the 14th, I can just look at the leading negative divergence since the 14th as enough time has passed that the 30 min chart's signals should be valid.

 QQQ 1 min shows a similar positive divergence which accelerated yesterday in the afternoon and thus far 3C/price are pretty much in line, so large caps in the Dow are trading a bit differently than the other averages which so far is on an intraday scale, but it would be interesting to see what might come of that. Although the DIA 1 min signal was negative and it lost ground quick, that doesn't paint the whole picture, not by a long shot. I'd like to look at the Advance/Decline lines and breadth indicators in the Dow vs any other average.

 QQQ 2 min is pretty much in line with price.

 The 5 min is in a leading negative position, however trade intraday is nearly exactly the same as the 3C movements.

 QQQ 15 min leading negative.

 SPY 1 min positive from yesterday afternoon and a negative divergence as the SPY hits resistance in the form of yesterday's close.

 SPY 2 min is nearly perfectly in line with price.


 The 5 min has some decent size swings in 3C, but it is leading negative and pretty much in line making lower highs and lower lows.

SPY 15 min is leading negative, even if we don't count the large relative negative divergence.