Market Update

From taking a look around, I do think the market itself, the averages, will most likely pullback a little and will accumulate some more for a nice, emotional pop to the upside that washes away the horrors of yesterday for the buy the dip crowd and as I said yesterday, shakes lose any new momentum shorts that jumped on yesterday.

The fate is still sealed, but it's already obvious they will use the 3 levers HYG (up), TLT and VXX (down) to support this move which has no real support otherwise, other than whatever they are willing to throw at the manipulation-retail itself can't do it.

So you might want to think about any short term positions you have, long or short and plan accordingly.

Examples...

HYG needs to move up to manipulate the SPY arbitrage positively.

 The 2 min chart is leading positive, a short timeframe, but good enough for a near term move.

Longer timeframes...

That's huge money flow on a 4 hr, negative-HYG is for all intents and purposes, done, bur it will bounce as we have lots of volatility coming.

VXX needs to go down to manipulate the SPY arbitrage positively.

2 min chart has minor accumulation, this is why I think TLT makes a little run higher/the market lower (not worth trading this run in my view) and then the market continues to accumulate a larger short term base as suggested last night.

 VXX 5 min is leading negative-this fits perfect with the scenario laid out above.

VXX 30 min is more than a little positive, this is the ultimate direction, up and the market down, but we are talking about top/reversal volatility, we are getting ready for these long term trends.

TLT needs to go down to effect the SPY arbitrage positively.

3 min is leading positive, I'd be looking to sell any short term TLT positions (long) in to the next move up intraday which should be close (down for the market).

Daily TLT leading positive-so again the longer term trends or the most important are still well within the Bearish camp, very much so, but we are talking about short term volatility psychological warfare on traders.