Opening Indications

First on Monday it was clear the underlying strength in the short term and now we know that right now a 5 min chart's divergence = about 1 day (so we can define short term), was in the IWM and the weakness late Monday was in the QQQ. As of yesterday the IWM was up about the same percentage the QQQ was down, however there was another shift, this time the IWM was seeing negative divergences in to higher prices and the QQQ was seeing positive divergences in to lower prices so in last night's "Wrap" the clear assumption was for at least a difference in relative performance if not outright divergence between the two averages. As of right now, just as expected the IWM is down and the QQQ up.

Here's what the opening indications look like so far.

 The DIA actually has had some decent short term underlying strength and this 1 min chart on the open shows a positive divergence, the Dow is down in large part because of the Boeing Dreamliner problems.

 Although this really isn't part of opening indications, just for perspective, if you back out the same DIA 1 min chart you can see where the short term accumulation/positive divergences were to the left and you can see yesterday's strength did see some distribution in to it.

 The IWM went from strong underlying activity in the 3C charts Monday to negative divergences all day yesterday as the price strength was sold in to laving the IWM with this 1 min negative divergence from yesterday which is part of last night's analysis suggesting relative underperformance in the IWM vs the Q's. The actual open is pretty flat as far as 3C is concerned, pretty much in line so we see where the IWM goes from here.

 Here's yesterday's close with a negative divergence sending the IWM lower this morning, but again it's pretty much in line at the green arrow this morning.

 The QQQ however was looking better (it was not looking as good as the IWM Monday though) and I suspect that has to do with AAPL, as noted last night we entered AAPL and later DeMark made an AAPL bottom call, here's our view of AAPL yesterday including the 3 posts and the trade from yesterday. Although our analysis had nothing to do with DeMark's, I do find it interesting as I rarely like options except for very good signals and yesterday's AAPL call trade should do pretty well with AAPL already up over 3.5% this morning.

 The SPY opened in line so far.

 The same chart longer term doesn't look so good, but this is what we expected, these are the signals I said we wouldn't see until we were above the 1/4 SPX highs.

I was forwarded this from a member, the author is a former local (floor trader) and you know how I talk about the depth of the order book, well according to him, this is where there are limit orders congregated. I don't know that it means anything, but part of being above the 1/4 highs is to create demand to sell in to and higher prices do that and you know about the money Wall St. can make hitting these orders, so I put it out there for you, but it's not part of my analysis, I take it with a grain of salt and let the market tell me, but this does demonstrate why I don't ever place orders with brokers unless I'm executing right now, you are giving them this kind of information and most of you don't have access to the depth of the book.


There is a large line of buy stops that start above 1472 that run to 1478 and again above 1479.70 up to 1484.00