Market Update

Charts are moving quickly as I'd expect at this point of the market, but if we are to get a fast trap / short squeeze, then it will move even faster.

It takes some time to capture and upload these charts so they can change a bit, but this gives you a general idea of where we are and what we still need.

As far as giving bears confirmation and the chance to get in to the market as yesterday they didn't have the best opportunity, this morning's gap up which had absolutely nothing behind it other than pure manipulation, no news, no data, no correlations, it seemed to be there for one thing only, to give shorts a second chance to short at a higher level as they may have missed out yesterday. That makes the SPY look like this.

 In yellow we have the failed tests of resistance, this would be one of the most basic set ups you would find in a 25 page "Getting Started in Technical Analysis" pamphlet from 1998, that'a how obvious this pattern is and I haven't seen a true one work for well over 5 years at any important place- Do you get my drift?

The yellow arrows are the failed tests of resistance, but traders want price confirmation (a break of support or lower low before they'll pile in, the red arrows are the confirmation days.

Now the progress of the major averages, I'm not going to mislead you, it's slow going, but these things can change very fast, even before I finish posting this update.

 SPY break under the triangle 2 min chart, you can see accumulation and distribution areas

5 min chart is what defined the downside move expected in the market so until this chart is repaired, I'd say we will not see a short squeeze, this is the Maginot line.

SPY 15 min overall is in good shape, but it still can't do much until the faster timeframes align.

DIA 2 min, there's some progress, it isn't jumping off the chart yet.

DIA 3 min has some more progress, better looking, but not enough on its own.

 IWM 1 min shows where there seems to be an apparent range os accumulation/positive divergences, I highlighted it on the price scale.

 The same with the IWM 2 min chart.

And the larger IWM 15 min chart, it's in good shape, but again, the short timeframes need to align, migrate through to the 5 min charts, repair them and scream or jump off the chart.

QQQ 2 min, again I highlighted the apparent accumulation range where positive divergences are, if you look close on all of these charts you'll see a clear negative divergence on the open this morning, a strange move that had ZERO support.

 QQQ 5 min , again the range in highlighted, glad I didn't enter new longs yesterday on emotion, it never works, it's only hard facts that give you an edge.

 HYG is interesting, it is an institutional risk asset, HYG "Should" be leading any market move to the downside, but as mentioned yesterday, something changed in HYG.

This is HYG in green vs the SPX, the difference in trend speaks for itself as a move down in the SPX, if it was real, would see HYG leading it, instead its leading on the upside.

 HYG & the support level I thought was key yesterday, the 2 min chart and positive areas at support.

HYG 2 min -note in green there is no distribution/negative divergence on the turns to the downside, it's as if they are keeping the shares.

 HYG 5 min with the same story.

HYG 10 min, same story.

HYG 15 min, same story. This is VERY significant.

 Note how much sharper the SPX is today vs its normal correlation with the Yen, it's almost as if someone wants to create the impression of a very bearish market, more so that other assets would account for.

 HYG (green) vs SPY (red), again note HYG holding up better than the SPY, Credit leads, just back up the chart and you'll see that on the downside moves and former upside moves so this is significant.

 TF 1 min (R2K futures) with a large relative positive divergence

 NQ 1 min (NASDAQ 100 futures) with a larfge relative positive divergence-interesting this formed overnight/

ES 1 min starting to lead positive (SPX futures)

 USD/JPY 1 min going positive-good for the market

EUR/JPY attempting to help

AUD/JPY attempting to help

 $USDX 1 min

Yen 1 min