MARKET UPDATE

It is starting to look more and more like that flag pattern (bear) mentioned as a possible shakeout level yesterday, was hit as exactly that.

 SPY flag

 SPY 1 min is gaining more upside momentum

 The 3 min never really went under yesterday's range and is seeing leading momentum to the upside.

 The DIA was the ugly chart yesterday, it's showing the first positive divergence this week.

 The IWM intraday 1 min is leading positive above yesterday's closing levels.

 The IWM 3 min is doing the same so the divergence is migrating to longer timeframes.

 NASDAQ futures continue to improve as well.

 The QQQ intraday 1 min continues to improve

QQQ 10 min never left yesterday's range or dropped below, this is why this looks more like a shakeout.

However sentiment is definitely pessimistic and growing more fearful, I'll continue to hold open shorts and stick with the plan from Sunday, short any price strength.