It looks like the SPY calls are in the green, I'd like to see a burst of momentum and sell in to that, unless there are really amazing divergences, I don't want to hold this overnight, Divergences rarely get run over like they did today, when that happens it's typically because there is fundamental news and what I mean is an event that the market didn't know about ahead of time and it has to discount it on the fly, there was fundamental news and I'll get to that, the market discounted it on the fly and ran over the earlier positive, but those who built that intraday divergence want their money back, once the supply dies down and they have absorbed it, maybe they get some good news as a spark and they get back to where they have inventory and make money doing so because they bought on the way down, especially if they are market makers forced to do so on a market order with no match.
1 min SPY, opening negative divergence, the first positive was run over the second is where all the levers started showing up, they lost control and this is why I keep shorts open when the long term and other probabilities are negative, you don't know when that Black Swan is going to stretch its wings, but you do know where the probabilities are.
2 min, the first divergence run over, second held and we have a pullback/consolidation here.
The 5 min is marginally positive
10 min is ugly, an island top at #1 and #2 and leading negative off those gaps.
The Fundamental event...
EU DIJSSELBLOEM SPOKESWOMAN: DIJSSELBLOEM DIDN'T SAY CYPRUS A TEMPLATE FOR BANK RESTRUCTURINGS - DOW JONES
Although he did, maybe he misspoke, but he did and that is what the market didn't like and the rebuttal above is what brought some calm back, but everyone knows they crossed the Rubicon, what he originally said is the truth.
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