Market Charts

I realized there was no way to get that last post out before the close with these charts, so here they are.


The theme is largely the same as what you have seen in the last couple of updates and what you'll see in the DIA...

 The green arrows represent price movement, the 2 min negative divergence basicaly saw the negative divergence migrate through the longer intraday timeframes, from 1 min to 2 min, 2 min to 3 min, etc. as a divergence should, but as mentioned it didn't create a consolidation in price, but through time as price flattened out and travelled laterally; this type of consolidation is just as useful as a price pullback in terms of keeping the equity from becoming 1-day overbought and allowing it to continue it's path upward.

Toward the end of the day even on the 2 min chart you can see the DIa saw a positive divergence which would be a new divergence for the day and start on the 1 min chart, it migrated to the 2 min chart because it was strong enough.

Here's the DIA 1 min chart, again you can se the negative divergence simply too the market fro up to sideways, a consolidation through time rather than price. At the end of the day, the positive divergence developed, but note where, on a dip in DIA prices (buy weakness/ sell strength).

 FAS was one of the first I mentioned this behavior with, I'd rather have seen price stay put or fall and 3C continue to move higher, but the movement may cause some early panic tomorrow on the open among shorts so it's not all bad.

 The IWM 5 min chart shows how far the negative divergence migrated, but also how resilient the IWM was in not losing ground and consolidating laterally.

 The faster 1 min IWM shows the late afternoon positive divergence building in the IWM.

 The QQQ, as you might imagine, looked great today. The 1 min chart saw only a brief negative divergence to halt the upside and the positive divergence there lasted the rest of the afternoon, this can't be separated from AAPL's action and remember we have been expecting a shakeout move in AAPL to the upside to rid itself of some shorts that entered too soon on the initial break of the H&S as I warned of. I do think there will be a profitable AAPL short coming, we're not there yet.

 QQQ 2 min shows the migration of the positive divergence, this is a nice looking chart and no doubt because of AAPL's moves.

 AAPL 5 min saw a negative divergence migrate out to the 5 min, this is nothing like the 15 min positive divergences of yesterday which were incredibly strong.

 AAPL 1 min goes negative just enough to send price sideways and then we see the positive divergence, to see AAPL accumulated this late in the cycle (between stage 1 and 2) is impressive.

SPY 2 min doing the same, negative just enough to consolidate sideway and then add to the positive divergence, all in all this was a great start to the bounce we have been looking for.