Market Update / Sentiment Update

From our main man dealing with the Twitter... um, nice folks.


"twitter feed went uber bearish at end of Friday and even now...

Amazing what a little price action does to everyone's sentiment.  Now practically everyone on my feed is calling a 10% correction here."

I say to that, "Hey, what do you expect, Diane Sawyer is calling the market now"

This is why I started a long time ago creating my own indicators, what everyone else already knows is useless information.

Earlier I mentioned a lot of TRIANGLES and there have been a lot of other common consolidation/continuation patterns. 

This kind of really works out almost perfect because most traders won't buy or short the patter itself, but as soon as it breaks support or in a triangle's case, its apex, then they will rush in as momentum traders and chase prices, as I said last night, "There are few reversals on ANY timeframe that are worthwhile that don't pull a head fake move first".

So these really common price patterns suggesting another leg down were really the perfect way to do that.

What has changed...

For one, the Yen is showing some extreme negative 3C momentum in to price highs, the $USD is already massively positive, these are the ingredients needed for a USD/JPY reversal which is the main correlation for the market, even though the market didn't follow the pair very much this morning just like the pair wouldn't confirm the market Friday. The pair also is positive and of course... not only are the averages positive, but they have a reasonable reversal process built in this morning.

Watch for a USD/JPY move >$100, that will be a huge event for the market on the upside if that actually ends up holding today.

We should be VERY close.