Quick Examples

This is a follow up to the last post, after looking a little closer, it's even a bit more interesting and is a good lesson for those using 3C about the progression of divergences.

Here's an example using the QQQ of exactly what I was talking about including the end of day trade as well as the long term charts where there are some surprises.

 The 5 min QQQ chart shows a leading negative divergence, however it may be halted here (normally any way if we didn't have an election) and this is why.

 The 1 min chart is faster, it has more details and the 5 min chart is a reflection of what happened here first, note the 1 min chart was going negative in t the highs, this makes 100% perfect sense as smart money SELLS IN TO STRENGTH, by the time the 5 min is going negative, the 1 min is already moving up again, this wouldn't be seen on the 5 min because it takes time for a divergence to migrate through timeframes and the divergence has to be strong enough, but as far as the 5 min leading negative taking the market lower (under normal circumstances), this 1 min chart would suggest that early tomorrow we have at least the start of what may be a much larger positive divergence. Any time there's a change it will be reflected on the 1 min chart first, if it is strong enough it will reflect on longer term charts as we see migration of the divergence.

 QQQ 15 min leading positive divergence, this is a very strong signal by itself and there's no negative effect from the 5 min chart.

 The 4 hour chart's trend is leading negative so the long term probabilities are VERY strong on the negative side, but zoomed in we can see what the near term market looks like and here we have a leading positive divergence, this would be the first since the QE3 top.

 SPY 5 min also showing a leading negative divergence like the Q's

 However the 1 min is already reflecting the start of a new trend.

 SPY 4 hour zoomed with another first positive divergence since the QE3 top in mid-September.

I'm not going to go over the intraday charts anymore, 2 examples are enough.

 DIA 15 min leading positive divergence

 Surprising DIA 60 min leading positive divergence when zoomed in, of course the trend of the 60 min chart has a long term negative, but zoomed in for a closer look at the recent market, this is a surprisingly positive chart.

 Even more surprising is the 2 hour above with the first positive since QE3 and below...

 The first positive on the zoomed 4 hour chart since the reversal at the QE-3 announcement.


 IWM 10 min leading positive (this is why it's interesting, we have leading positive 10-15-30 min charts and zoomed we have positives on long term charts, this does not reflect the long term trend, but it does reflect near term trends).

 IWM 4 hour negative at the QE3 announcement and the first leading positive divergence since then, of course this too is zoomed in, if this is put in proper perspective for the longterm indication, it's very negative, but this signal is valid as well for the short term.

 ES 60 min. leading positive divergence

 ES 4 hour leading positive divergence

NASDAQ futures with a 4 hour leading positive divergence.