Another Market Update

I've been looking at this congestion in the market, I found the pattern clearly in the Q's which are getting some help from AAPL, as I suggested AAPL would move higher yesterday.

The pattern is a triangle, retail takes it as bullish, but they won't buy until it breaks out, there is a 1 min positive at least on the Q's so I'm thinking this will be a head fake breakout from the triangle this early, this may in turn set up some trades-just as AAPL might as well.

Note the triangle at the white area and the 1 min positive divergence.

The DIA has something similar and this is why (among other reasons) I think this is likely a head fake move, we usually know they will be head fakes in advance due to current divergences before the move happens...All of our best trades and highest probability trades have set up the exact same way as the DIA below.

 DIA 1 min , note the slightly larger triangle. If you zoom the 1 min chart to intraday you get an "in line status, this could be enough to support the break out of the triangle. Because it is a symmetrical triangle following an uptrend, retail technical traders see this as a bullish continuation pattern, it's one of the most basic price patterns out there and often used as bait by Wall St. for head fake moves.


As mentioned, these are our best set ups, good price, low risk, high probability because of the head fake factor.

Why though would we think the breakout would be a head fake?

You already saw the DIA 15 min chart's damage/negative divergence, even at the 5 min chart it's leading negative.

All good head-fakes we are aware ahead of time that they are almost certain head fake set ups before they move based on behavior and the already present negative divergences in stronger timeframes, this is why we use them to short in to or buy in to on a downside head fake like TLT's yesterday-which had the same 3C confirming head fake signals.

The fact it has set up this early, is good, the trend has plenty of time to make a move, distribute and possibly, if it works out as planned, allow us positioning.

I have more charts to look at and some alerts to set.