Monday, December 31, 2012

Quick Market Update

The averages are at best, in line intraday, the SPY, NASDAQ Futures & DIA are nearly perfectly in line, the QQQ are slightly better than in line and the IWM is negative. I think ES (SPX futures) is the best representation at this point of all of these signals taken together.

As mentioned earlier, the first negative divergence is enough to cause a consolidation which has happened as ES moves sideways, but the divergence continues to grow deeper here so I'm leaning a bit more bearish intraday, at least for the next move from here.

The short term 1 min TICK chart isn't horrible, but it doesn't have the strength it was showing earlier today. The short term volatility indications in VXX and UVXY are positive which is negative for the market, again stressing SHORT TERM 1 min charts. It seems the market is still in a holding pattern, waiting for Congress, but it also seems like trend #1 (a pop, likely on some Fiscal Cliff good news) is well supported.

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