XLK-Technology

Here's Tech, similar to the NASDAQ 100 as you'd imagine due to the number of Tech components in the NASDAQ 100.

While the issue is whether to start a position in TECS (3x short Technology) or add to an existing one, I prefer to use XLK because it has better liquidity than TECS, you just have to remember whatever you see in XLK is the opposite in TECS.

 Like the NASDAQ 100 / QQQ, there's a range that "could " be used in a head fake move as a reversal catalyst, but as you will see, I think last Tuesday's accumulation was a set up for the market to actually complete a head fake move, notice I said complete and that opinion is born out of some charts I see below.  The break out level would be above $29.40 in XLK.

 Here on a 1 min chart it looks like we have a positive divergence and a decent chance for an intraday reversal to the upside. I'd prefer if 3C which is in positive positive was also trending up or at least pointing up, but that may happen before I finish this sentence.

 The 2 min chart is not only negative intraday, but this is part of the evidence I mentioned that we already saw the head fake move which was above $29.30, as you can see this is where the 3C divergence is the worst, implying the heaviest distribution and validating that as a head fake move.

 3 min chart from the 16th's positive divergence at the lows to the negative divergence at $29.30 and then another at the breakout above $29.30. Last Tuesday happened so fast and was very confusing, I only knew it wasn't big enough to change the general trend, but it was positive action and it seemed to be to shakeout shorts; now looking back it seems that is exactly what it was. As I often remind, when you see a 3C signal you will never know why, you'll just see what they are doing. If you want to know why they are doing it you can find out, but by that time there's no more money to be made.

Yellow areas are head-fake moves.

Below is the XLK 5 min chart showing the longer trend since the 16th when this began, note that accumulation began before the 16th, in fact several days before, but  if you average that accumulation from the $28.25 area down to the $27.20 area, you get some average position cost in between, however notice that distribution didn't even begin until price in XLK was well above where accumulation first started, THIS IS A VERY IMPORTANT CONCEPT IN UNDERSTANDING 3C, INSTITUTIONAL BUYING AND GETTING IN TO POSITIONS AND TRUSTING THE INDICATOR EVEN WHEN IT'S VERY HARD TO DO SO.