MARKET UPDATE CHARTS

Unless something big changes in the last 15 minutes or so, this will probably be the EOD market update as far as 3C charts of the averages go.

 I see since my last post warning of intraday downside coming, while I've been preparing this post, it has materialized so I hope it was helpful and this is why I sometimes include charts on a separate post as I can't get the information out fast enough to be useful if I include chart capturing and uploading time.

There's some interesting things going on, the DIA continues to display better relative underlying 3C performance than most of the other averages, the IWM (which I was told today had a large skew in the Put/Call Ratio of 6.6 whereas the SPY was at 1, last I heard 185k puts to 28k calls- I don't base analysis on this as there are a lot of games played in options, but considering the IWM charts it's interesting), the SPY and QQQ also have some interesting characteristics in which there seems to be some meeting of the different trends I spoke about as they were already in close proximity-remember the "Perfect Storm" post earlier today?

Each is telling us something a bit different, but all part of the same story, it's kind of like watching an event from several different perspectives.

 The DIA is one of the few charts that made it to a positive intraday divergence today alone, many other charts were in the 2-3 min intraday area.

 Speaking of the 2 min intraday area, this is a large leading positive divergence, you can see it is stronger looking than the 10 min chart above, but since the 10-min is a longer timeframe, it is the stronger, more important chart. This is how divergences migrate, if the divergence on this 2 min chart is strong enough it moves to the 3 min, then 5 min , then 10 min.

No matter what price is doing in end of day trade, the DIA is telling us that there was some strength for a short term move put together today and that is what we are prepared for.

 The IWM 2 min chart shows the negative intraday divergence that caused my last warning much more clearly, even though the overall divergence on the day is leading positive in the white box.

 The 5 min IWM chart (remember the Put/Call ratio for the IWM) is not seeing the same strength as the other averages, certainly not like the DIA, this is still in line with a quick move to the upside followed by a bigger move to the downside which has been what we have been seeing in most areas including leading indicators which I will update after the close.

 QQQ 5 min looks much different than the Q's, the leading positive today is respectable and tells me today's price action was almost certainly a head fake shakeout before an upside reversal, no mater how short that move may be, we can't account for how strong it may be and this is why I prefer the call position for this situation.

 QQQ 10 min is interesting as it seems to show a short term and probably something closer to the tail end of an intermediate term positive divergence coming together, the sub-intermediate move can still be to the downside and strong, this is a chart to watch.


 QQQ 15 min is showing the high probability of a sub-intermediate sharp move down, but zoom this chart out to September and the intermediate positive trend becomes visible, this is what I mean when I say multiple trends are converging and it's a complicated market right now.

 SPY 2 min leading positive as of about 1 pm today...

 The same chart this afternoon warning of downside with an intraday negative divergence.

 The 3 min as of 1 pm or so, leading positive...

And the same chart at the EOD with barely a hint of any negative divergence, this tells me the negative divergence I warned of in the last post is likely nothing more than an intraday move and is not strong enough to be concerned with, it is likely more tactical and psychological than anything.

sPY Call options are still open.