Market Update

This has been a strange market, no one could argue otherwise, I'll show you leading indicators and you'll see how some of the CONTEXT magic was pulled off, but the closing indications will be what really matters.

There hasn't been a huge groundswell movement in underlying trade, it seems it has been positive enough to recoup the gap, but doesn't seem to be moving in to those midterm charts I've been watching all day. As far as the market action and the gap, as I said earlier, this thing had to be pretty hush hush to avoid a bank run, they waited until the markets and banks were closed and waited for a 3-day bank  weekend, which at last I heard was going to be pushed out at least until Thursday, I'll have to double check, but if you are a market maker, specialist or the new version, an HFT, you are in big trouble holding inventory when a 2% gap comes, you NEED to get back to fill that gap to unload your inventory which you keep in stock as part of normal day to day market making operations, I doubt many of these guys had a heads up and if they did (say at Goldman), I'm sure they were promised "We'll get you back in to the gap", why else would accumulation be so heavy on the open? I'd be willing to bet the market makers who knew, knew they'd be promised the opportunity to buy at the lows, move up to the gap and unload inventory, making quite a bit of money in the process if they just wouldn't do anything that was going to give away a deal that I'm sure Goldman would profit from.

 Here are some market charts, then hopefully leading indicators will make more sense.

 DIA 3 min is deteriorating

 DIA 10-min thus far hasn't done anything interesting and this is where I was watching for a move.

 IWM 10 min is as close as it gets with an in line chart, but that's not positive flow.

 At 15 min there's no doubt there wasn't any heavy movement in underlying trade to the positive side, in fact, it looks quite the opposite.

 IWM 3 min, closer to intraday trade is also negative

 QQQ 2 min intraday is negative, it will be interesting to see if this divergence really migrates and becomes much worse, then I'd almost be willing to publish an article in the WSJ about how money buys silence.


 QQQ 5 min is going negative

 SPY 3 min intraday is going negative-*Note you don't have to fill the entire gap if you accumulated heavily on the open and who would have done that without some assurances?

SPY didn't make it past 5 min here so there was no massive change in the middle, the area I was most interested in.