Opening Indications

Yesterday we entered IWM weekly calls just off the lows of the day, today those are obviously in the green, however this is a volatility based move and not a market strength move.

Thus far in the averages, most are falling short of confirmation on the 1 min chart, this likely will lead to some consolidation intraday as the opening has been somewhat parabolic in its ascent.

NASDAQ futures are trying, but are not quite able to confirm the move, ES futures are not even close to confirming.

Momentum indicators on the 1 min charts are starting to diverge negatively, but on the 5 min chart are very much in line. I'm going to suggest we see an early "correction" which can be through price or time (lateral consolidation price pattern).

I believe it's too early for this move to be over, however I do expect that these moves based on volatility that are characteristic of behavior at reversal points will continue to grow and become more unstable each passing hour at this point (rather than day).

I'll update you on any new developments, but my plan for the IWM call position for now is to be patient, my plans for longer term positions continue to be to look for areas of price strength and underlying 3C weakness to initiate or add to existing short positions and maybe even the odd long position.

I'm going to look further in to the market structure and underlying trade.