Market Update

With all of the uncertainty this week, last week's range which is a powerful reversal area (as you know we are looking for 1 more upside reversal to sell short in to) seems to have come at a very bad time.

We predicted a range, noting that a reversal, even if only for a shakeout move, is a process and not an event. However this process could have unwound many different ways such as a "U" or "W" consolidation, instead we were right on with the range and the reason I thought a range BEFORE the market had even given us a sign that it would form a range and wouldn't just keep falling like a rock, was purely based on market behavior. A range has clear support and resistance and all of the things a reversal needs are best found in a range.

So I'm happy it developed as we expected, although it's difficult to have all of this uncertainty just as we come to the area in which the range should be giving way to a reversal. One thing a member reminded me of, something I always remind you of, is the market hates uncertainty so in a way, no matter who wins the US elections,the certainty of them being over may in fact give us the window we've been expecting right about now.

The earlier notations I made about how the market was showing bullish and positive underlying behavior today have not changed and I would say if anything they have grown, so I do like what the market is looking like on today's trade this far.

 DIA 1 min looks good today, but this is the least of the positive activity.

 Overall DIA 5 min, big picture shows what had me concerned on Friday all pretty much repaired today, it looks more and more like a 1 day head fake, maybe because of weekly options, maybe it has to do with cycle timing, who knows, but it did its job and it looks like whatever damage was done is now repaired.

 DIA 15 min today look excellent.

 And surprisingly, even the 60 min is in a much stronger position than I would anticipate.

 IWM 10 min, as mentioned, "The longer term charts are where we are seeing the action today) and that may be appropriate because these show us larger, more important activity and if you needed to make quick changes or repairs in a day or so, you'd need to move these longer term charts.

 IWM 3 mi shows the head fake on Friday, but not a lot of distribution before that, today we are hitting new local leading positive high while at lower prices (compared to Friday's open).

 QQQ 5 min showing the same head fake and leading positive divergence today, this doesn't look like a market ready to follow through on the downside right now.

 Look at the leading positive in the QQQ 15 min all TODAY!

That's a huge move.

 SPY 3 min looks good and as you might expect for a positive day, but...

Tae a look at the leading positive today on the 5 min, compare to the head fake negative divergence on last Friday's open at the red arrow, there's quite a bit of activity in underlying trade that few see today.

I'm pretty well set for longs as I set them up at the bottom of the range last week, but even with the uncertainty of events this week, I feel pretty confident that the cycle was set up and Wall Street will run it and you will know when they do.