Chart Examples

These are the charts I promised in the last market update a few minutes ago.

First the normal momentum tools that anyone can construct and use.

The symbol here is the SPY (1 min) as we are using this for intraday changes, but it works well for other timeframes too.

 First the TICK with a simple linear regression trendline on the SPY and the TICK below it, they should move together, here the breadth of the market as represented by the TICK readings is much thinner than it should be, that's a warning sign.

 This layout is a bit crowded, but in the top window with price is momentum which is failing, RSI which is negative, MACD which is negative and Stochastics which I use for embedded signals is no longer embedded.

 The 1 min DIA is the example of what I meant when talking about the intraday 1 min 2, and 3 min. Note where the 1 min chart not only on the DIA, but all of the averages, goes negative, right as the DIS passes above Friday's close, like I said there's not much of a price gain, only +0.14%, but the intraday volatility can make people more emotional and believe something that hard figures and facts don't support. The market gives us so much information you could justify any position you wanted to take, I've seen some really strange ones, I mean like tin-foi hat strange.

 DIA 2 min is in a relative negative divergence, but it needs to work through this as well just like the 1 min chart.

 The 3 min chart shows a small amount of accumulation in to the lows giving us the intraday volatility, but as you can see, it looks like those shares are already being sold off.

The longer the chart, the more important, at 10 min on the DIA I don't even have to draw on it, the signal is pretty clear, those 1, 2 and 3 min charts would have a lot of work to do to overcome this signal on this timeframe.

 AAA 1 min is in line until it passes Friday's close, then starts going negative

The same with the SPY, the white trendline is just Friday's close.