Market Update

The market is moving in the direction of the longer term divergences, or basically starting to move toward the underlying cycle of accumulation. Intraday there are several negative 1 min divergences that showed up in most averages right as they crossed the break-even from yesterday's close.

I'm really not sure what a reversal at this point should look like, I just feel comfortable with the longs as I mentioned yesterday based on the positive divergences, the intensity, confirmation and length of them. We can't forget today's also Op-Ex Friday and we have a short holiday week next week, so there are quite a few things that are out of the norm. Then we have the Israel situation which I believe some recent news about reservist call ups may be behind this latest intraday turn and of course the Fiscal Cliff which "seems" to have been behind the earlier ramp as Boehner:

Boehner says talks with Obama were constructive. Outlined a
framework with Obama; Will accept revenue if spending cuts

However the recent momentum in 3C, timeframes, and now the participation rate in the TICK are all things that are deeper than the usual skin deep ramps on low volume/low participation.
Here's an example of what I mean when I talk about being comfortable with the big picture and then a few of the intraday charts.

 This is the intraday negative 1 min divergence that kicked in right as the Q's passed yesterday's close, Op-Ex pin action?


 Movement toward the 3 min

 5 min

 10 min


 15 min (I show you the intraday 15 so you can see the momentum in such a long timeframe so quickly.

 Here's the 15 min trend in the cycle area.

Now intraday 1 min negatives are also in ES and NQ Futures...


 As well as IWM, again tight at yesterday's close.

The SPY is in line and the DIA is a bit more positive than in line.

I want to check the leading indicators again as well as the FX charts.