Industry Group Update

The 3 main Industry groups that are essential to starting and maintaining a risk on move are Financials, Tech and Energy, those are the 3 we'll look at. First I'll show you the bigger picture in all 3 and then what they are doing this morning.

 Energy's big picture 30 min leading positive divergence, this is more than enough to give us the upside move we are looking for to short in to and take profits on longs set up last week.

 Intraday on the 1 min Energy had a relative negative divergence on the gap up open, so a pullback there is not surprising at all, but now we are starting to see a leading positive divergence in to the pullback. This is more of a tactical timeframe and the30 min chart above is more of a strategic timeframe.

 Financials have a longer positive divergence that 10 min, but the 10 min is the clearest, from the negative at the top on the 18th to a large relative positive and a leading positive as Financials made a break lower on Friday that I would consider a head fake move to lock in shorts (Bear Trap).

 Intraday on the 1 min chart there was a very slight negative divergence on the open, this is probably why we saw so little downside movement, just a gap fill and now it has started a leading positive divergence.

 This 2 min chart also shows the very positive divergence at what I am fairly certain was a head fake/bear trap move on Friday.

 Technology also has a longer positive divergence, but again the 10 min is the clearest, from negative to leading negative on the 17th/18th to a relative positive and then leading positive later in the week, this is more than enough for the move up we are looking for.


 Intraday Tech has been nearly perfectly in line (3C with the price trend) or confirmation, this morning's leading positive is the first divergence in Tech since Friday's open.

 The leading positive divergence is also migrating to the 2 min chart.

As well as the 3 min chart, which was also in line until this morning, all in all, a good start and it's building. So far pretty much in line with the opening indications post from this morning.