Market Update

This market is getting very emotional, it's hard to believe that short interest is so low. I still want to check the Leading Indicators and I will next.

As for the market, I was checking for a few things, 1) since in several averages like the QQQ and SPY we have either seen a pretty big move on the day or a big move intraday (range),  I wanted to make sure there were no positive divergences on short term charts that would threaten the 10 min negatives that suggest the market see downside which I have been calling a pullback. Secondly I wanted to make sure that the 30 min charts that have had enough of a positive divergence to move the market higher after a pullback haven't fallen apart, so far so good.

We probably have more room for downside although it may rotate from the Q' today to the SPX tomorrow or maybe the DIA/IWM. I'm still holding speculative positions for a pullback move such as UVXY and FXP, after that I'll be looking to add back the longs I closed near the top of the 2 day move up like TQQQ and FAS, maybe URTY. Eventually I want to get to an area where I can close those and finish up with core shorts.

So far I don't see much that throws that plan off track, although signals are getting more extreme for obvious reasons.

 DIA is still sufficiently negative to expect the probabilities to be on the side of a DIA move down (pullback).

 The 30 min chart has held together well enough to expect the longer term trend after the pullback has enough gas in the tank to take the market higher.

 QQQ 10 min negative is seeing the expected move, it may indeed have more to go, I'd think it does, but I think we will see rotation and perhaps tomorrow the SPX will be the downside leader (as an example).

 The 30 min QQQ chart saw some damage, but it can still lift the Q's.

 SPY 3 min looks like the SPY owes us some downside.

The 15 min chart here really looks good for continued upside after the pullback.

So I think we are still on track, it's just getting more interesting in how rotation in the market has come back with a vengeance, but I'm not sure it's for the right reasons or will signal what it use to signal in the past. Things change.