Market-SPY Update

This is more of an example post, really in my view nothing much has changed from yesterday when my  interpretation of the charts was for some near term weakness (perhaps early today-maybe a bit longer, although I still think they'd like the stock market to make news like Monday in front of Black Friday shopping to boost consumer confidence) which would see accumulation in to a pullback and give us some good opportunities for trades (the long trades set up last week will remain) in the leveraged space.

The long term charts which are the most important and the highest probabilities are still very strong and getting stronger, it's just this morning's open isn't holding water and I didn't expect it to, it's not a negative reflection of the market, it's just part of the cycle and how things work even in the most bullish of markets. So I don't have any concerns, I'm more excited about the chance to see some new opportunities like AAPL's 115% gain on Monday with calls, the GOOG 12% and nearly 80% gain closed yesterday (calls) and the chance to do that again while maintaining the positions set up as the market started to show it's next steps.

Closer to home, this morning's trade is starting to crack, ES is moving toward the negative divergence that was present pre-market as well as NASDAQ futures, not much surprise there as it was expected yesterday. I think what is interesting though is that they aren't letting this market just fall apart on news like the Euro-Group last night, they are stepping in and supporting the market from a full fledged decline, so it's more of a controlled decline or pullback that I expect. We know and have seen them move them market a number of times so this shouldn't be surprising.

The charts (and the market is moving fast so these are probably already outdated)

 This morning's NYSE TICK with the SPY in red, like I said early on we saw about a +1000 reading, but after that as the SPY moved up and then lateral, the TICK continued to deteriorate, however note that deterioration lately is still VERY ild in the -250 to -500 range which is really nothing at all, it's not any kind of concerning reading.

 AAPL's open to the upside with a 1 min negative divergence and a drop...

 Here's some of the surprising strength developing already in the SPY 2 min, which is showing confirmation, but as I mentioned yesterday, there are charts beyond that which need repair.

 Take the 3 min for example with a couple of negative divergences including the open.

 And really the most important charts are the longer ones like 5 min which shows what may be some improvement, but it still has a bit to go before it's ready to be a high probability bullish move.

I will say, for all of the short term action, where it REALLY counts, the 30 min chart of the SPY continues to see a leading positive divergence so this is where the longer term probabilities and trend lay so any short term pullbacks should be opportunities.

I'll be watching for those opportunities, just be patient and let the trade come to you.