SPY Example

This is where our theory's end game either comes together (I feel good about it as we have had an exceptionally strange week and have navigated it very well with our forecasts) or we see something totally new develop and have to re-work our outlooks, I'd prefer the first, but whatever the market tells us is what we need to do.

Here are some examples of the SPY and ES, I'd use the QQQ, but for some reason my NASDAQ Futures 15 min chart's price is dislocated strangely, it may be a data feed or platform issue from Think or Swim, I'm not sure.

 SPY 1 min is no where near confirming the move up this morning, in fact it's moving down. This is important especially for early opening confirmation, but the 1 min chart is the least influential overall, the longer timeframes are the most important.

 On a 3 min chart there's no confirmation this morning either of the opening highs, we can see the yellow head fake area and i suggested several times that Wall Street doesn't do things without a reason and I felt the reason would be to create a bigger shakeout, hit more stop-los orders and limit buy orders by putting in a high above the yellow head fake high, I drew in a green candle to the far right that would represent a higher high and a green trendline showing where that candle would have to surpass the head fake highs.

The 3rd is Tuesday and that's when we first noticed something was happening and quick.

 SPY 10 min chart wouldn't be caught up this early, but the point is the large negative divergence in to the head fake high and the leading negative divergence since in the red box, you can see Tuesday positive activity within that negative leading divergence, but for the time, what we have is a more powerful leading negative divergence. The highs this morning do not confirm at all, since price is higher at point 2 than point 1, if there was confirmation and real strength building, 3C (orange) would be at least as high as 3C was at point 1 or actually higher.

S&P Futures-ES

 This is the 5 min chart, remember I've been watching this for deterioration because the original positive divergence on Tuesday was evident here and strong so the deterioration on this timeframe is important, the longer timeframes are more important, but they feed from the faster  ons like the 5 min to the longer ones like the 15 min below.

ES 15 min is showing some real deterioration, going from positive divergences on Tuesday to a leading negative divergence currently.

I said I wouldn't show NASDAQ futures because of the problem with the 15 min chart, but maybe someone else isn't having this problem or knows what's going on and there is still good information here.

 NASDAQ Futures (NQ) 5 min chart positive earlier in the week and deteriorating since then, now in a leading negative divergence, we were watching this 5 min chart and the 15 min yesterday looking for this to happen.

 The 15 min chart's price is dislocated, shifted down today for some reason, it's not like that on any other timeframe and the divergence seen now is not like the one from yesterday so this chart is useless right now, if anyone has a different looking NQ 15 min chart or knows why there's a shift on the TOS platform, please email me.

We can still get information from the 30 min chart, it wouldn't deteriorate unless the 15 min chart before it was deteriorating and passing that weakness on to the longer timeframe. We see the early strength in the week with positive divergences, but much larger negative divergences to the left and to the far right we see a leading negative divergence on the move up this morning.

None of the 4 major averages confirmed the move higher on the open.