I'm going to use the QQQ as an example to show you how close we are to a very pivotal moment before I switch templates to look at leading indicators, I want you to see how close to the edge we are.
Remember my perspective has been we are going to see a move lower (probably a new low for this leg), we were moving that way and had a "transient" interruption last Tuesday which I believe is imply part of a tactical move that is still part of that larger move lower. Within this transient interruption that started last Tuesday afternoon, I have thought we would see a sharp move to the upside taking out obvious resistance areas (the IWM is one of the best examples of that today) and that move would be followed rather quickly by a downside reversal to complete the original "larger" move down.
The QQQ charts should reflect much of this and they are representative of the other market averages.
From shortest to longest, the break out today in the market is seen here on a 1 min chart, 3C is not confirming, the price move is very parabolic and i have to watch it VERY closely because I do expect the reversal to come quickly and to be sharp.
The 2 min shows the interruption that started late Tuesday 12/4 with sudden positive divergences, that weren't that bit so I didn't expect them to change the ultimate move down, just to delay it and possibly cause volatility/shakeouts (as Wall St. doesn't do anything without a reason) and we can see the QQQ strength I mentioned yesterday and the IWM mentioned yesterday prepping the QQQ/IWM for a move today. That move is seeing a leading negative divergence so it looks like it is being sold in to on a shakeout as I expected.
3 min shows less of a positive divergence which reflects the strength of the positive divergence, the negative today is clear.
5 min chart longer trend from the positive at the lows of the 16th sending the market higher, then a had fake move (yellow arrow) with a leading negative divergence as the market starts to roll over. In orange the transitory delay/shakeout from last Tuesday 12/4 and the breakout today associated with that move, there's no point in Wall St. expending resources if there's no game, a move like this that fails sets up great positions for them and causes downside momentum to increase making the move down even sharper. You can see yesterday's positive I mentioned here, even though it is still in leading negative position and at the orange arrow you can see today's move looks very parabolic-these don't typically end well.
15 min shows the positive at the lows of 11/16, the distribution in to the top, a head fake move (yellow arrow), continued leading negative 3C signals with what I believe is another head fake move today as the IWM and others were just too obvious as Technical traders are soooo predictable, Wall St. uses them all the time.
The 60 min long term trend, I do think there's a good chance after we make a lower low that we are building toward a longer lasting/stronger move to the upside, but we cross that bridge when we get there.
You can see how quickly the market could turn down.
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