Market Update- Technology

Earlier today I mentioned a gut feeling that today might be the perfect time to launch this move, you may recall on Friday in the earlier part of the day we saw momentum to the upside and I WAS NOT comfortable with it, later in the day things looked more like they should, but so far today things look pretty good for this move to finally get kicked off.

We looked at Energy, Financials so we might as well throw Technology in there.

First the Tech Sector (XLK)...

 We'll start with the big picture-30 min chart, this isn't a big enough divergence to create a primary bull trend, but it's more than enough to shake the shorts out and then some. While a move up from here may look like an abrupt turn, there's an entire process that we've seen time after time and every element of that process is on this chart, this is what helps us identify areas where we want to phase in or out of positions or add to positions or take profits. The point is there's a pattern visible on this entire chart that repeats over and over in every timeframe, if you understand the pattern, you understand a lot more about the market, how traders are taken advantage of, how Technical Analysis is used against you and how the market really works and most importantly, WHY it works that way.


 A 10 min chart just before the break below the range area with a leading positive divergence as we've been down here.

 Looking from the other end, the  intraday timeframes, he 1 min is leading positive as of this capture, the open had a small negative divergence.

 The 2 min chart leading positive-again all of the signals we've been seeing in other groups and the market all make sense with what we are seeing here.

 Leading positive 3 min chart and in a big way, very quickly.

 The entire process from the trend of the 3 min chart.

The 5 min chart with the downside reversal, the range, the head fake move below the range and a huge leading positive divergence.

This is TECL the 3x leveraged Tech ETF and my choice for Tech exposure, again if I could have add I would, but I'm pretty much all set and positioned already.

 1 min leading positive.

 2 min


 3 min

 10 min

 And 15 min with the entire process, remember it all started with, "We are very unlikely to see a V shaped upside reversal, reversals are a process not an event" and that's what the process looks like, each a little different but all of the components are there.

 The 30 min chart, leading positive.

I'm not including all of the timeframes as it's a waste, but a few important ones in TECS-the 3x leveraged short Tech ETF-the signals should be opposite of the ones above.

 2 min intraday today leading negative

 15 min leading negative

30 min leading negative.