Market Update Charts

Since I captured these before the last post was published (IWM/SRTY) price will look a little different, there may be some slightly different 3C signals, but it's pretty early so if there is anything that is substantial I will be sure to update you and make sure you are aware.

First of all these are the charts that went along with this Market Update about 45 minutes ago

In the update I said,

" The averages are showing intraday positive divergences on the shorter timeframes as the market has been forming a triangle since the open...look for some intraday upside volatility shortly."

Here are the charts as they were captured right after that post so you can see what I saw at the time of the post....

 SPY Daily with resistance at the red arrows and a break above at the white with yesterday's "Dark Cloud Cover' downside reversal candle. This was captured about an hour ago right after the Market Update post warning of intraday upside.

 SPY intraday today on a 1 min chart up until about 12:53, as you can see after I posted the update and captured this chart, the SPY was JUST STARTING to break above the triangle.

 Here's the DIA and a 5 min chart showing several days, the reason I wanted you to see this is this: Technical Traders see a symmetrical triangle which has NO inherent bias, with these triangles, although they are considered consolidation/continuation patterns, the bias comes from the preceding trend within the timeframe-that trend was down. So to summarize, Technical traders would expect this triangle to follow the red arrows and continue the trend to the downside, I drew in  yellow arrow which I use to represent head fake moves as a break to the upside would likely be revealed at some point as  head fake move, essentially clearing out any early shorts and perhaps giving the bulls some confidence.

Bottom line- Technical Analysis has been manipulated and used against Technical traders AGAIN.

 The QQQ resistance area that we expected to see a breakout above last week even before the first hint of  price move in that direction, the breakout in white, the "Dark Cloud Cover" downside reversal candle at yellow and price lingering around support/resistance.

 QQQ intraday 5 min with today's triangle and the break below support (former resistance) with volume picking up. The red arrows are what technical traders would expect to see, the yellow arrow is what 3C was telling us was coming.

3C and the averages at this triangle and market update...

 This is why I said "Watch for an upside move", the DIA 3 min has a leading intraday positive divergence

 At 10 mins the divergence is not strong at all, so we know this isn't a large or powerful divergence and is likely to fail, thus making it a head fake move which we can use to our advantage with tactical entries or exits.

 QQQ 1 min is in line with price until about 11:30 when a leading positive divergence starts.

 QQQ 2 min showing a longer trend of negative divergences sending the Q's lower and a leading negative position right now, within that a small relative positive divergence, but the most important signal is the leading negative divergence, it is not intraday.

 QQQ 60 min, this is a very long timeframe, very large institutional signals, we see a positive divergence to the left, a run up in the QQQ, then two large relative negative divergences and the second one is at the breakout we expected this week above QQQ resistance.

 SPY 1 min with an early positive divergence and a leading positive as the triangle became more mature and reached its apex.

 SPY 2 min is not showing much of a positive today at all, in fact price is simply in line with 3C.

 The same is true on the 3 min chart, the only divergence here is a longer term negative at the highs.

SPY 15 min at A and B show two long term relative negative divergences. At point "C", although ther was some accumulation to make the SPY move up, it was not strong enough to appear on a 60 min chart, the leading negative divergence however at D does appear.

The take away is the accumulation cycle was not as strong as the distribution cycle, this is inherently bearish for the SPY and the resolution of this trend.

Finally a predicted, here's the breakout...

SPY breakout.

The TICK chart confirms the breakout had decent breadth, we just watch now for any ngative signals we can use for tactical entries.