Market Update

I'm going to keep this short and only deal with intraday charts as most of us already know what longer charts or trends of intraday charts look like, what I'm looking for are not only migrating divergences, not only the kind of divergences that have been able to tell us "IWM up tomorrow; QQQ rotates in; QQQ weak tomorrow; QQQ stronger tomorrow; QQQ fills gap tomorrow", but I'm looking for the more appalling divergences that scream at you from the chart.

Here are some samples, the Q's I look at as a somewhat different case, there are different motivations there especially among ant HFTs that perform market making like trading and the actual market makers as they are trying to get square with inventory on the gap down.

 DIA 1 min  not looking good this early on with this kind of move this early on.


 The 2 min chart, this looks bad as well, the divergence goes out further, but these are where they are looking quite bad.

 SPY 1 min chart and it saw some extra negative movement as the EUR.USD went negative.

 SPY 3 min

 QQQ 1 min, this is something to remember, "If a divergence is on the 1 min only, it can either cause a correction or a consolidation", this is a consolidation, when it starts moving to longer timeframes the correction is more likely.


 The Q's with their long signal given on Tuesday, the Q's up on Wednesday with a negative signal given yesterday and the Q's gap down with a positive position in futures last night, so the gap fill seemed to make the most sense.

This is one of the strange events, just last night I showed you my DeMark inspired indicator with a long signal forming in the VIX, despite any upside in the average today, the VXX has been able to hold in the positive range and now has a strong 5 min leading positive divergence, this is getting toward the kind that shout from the charts.