Market Update

I'll have to look through a few more assets to see what is pushing this, I believe HYG is still a player, but losing influence fast.

If I were capable of moving the market and had a pretty good idea that the F_O_M_C policy announcement tomorrow would not be a happy one for the market...

And lets not forget it was something like 150 hedge funds and private equity firms that were EMAILED the F_O_M_C minutes almost a day and a half early before their official release...I didn't even know that the F_E_D catered to smart money by emailing them the minutes whether early or even at the proper time,  so that should tell you something about how even the playing field is....

I'd be looking to send the market as high as I could, "Buy the rumor/Sell the news" type thing.

In any case, the point of the update is that several of the averages and Index futures look like they'll try to get an upside bounce going and that's pretty typical running in to an F_O_M_C policy announcement day. The more information I can gather in leading indicators and such, the better idea we'll have of the staying power, probability and what to watch for and how to use it.

In any case, here's a a quick overview of what I see right now.

 DIA 5 min, this isn't a huge divergence, it is really borderline as to whether it will make it or not, but it's there.

 The next timeframe at 10 mins shows what has been happening to any strength (as discussed within the context of "strength " being a VERY relative term right now) in that this is a clear leading negative divergence, also note the positive divergence that has fed this area of action from the friday 11 a.m. lows as mentioned several times since Sunday night.

 IWM has not looked good in most timeframes, but as I said earlier, it's still possible the IWM rotates in for a bit (as mentioned in the QQQ update today) and this 10 min positive is similar to the DIA's above.

 The Q's have seen continued distribution on price "strength" today.

The SPY 3 min chart is working on a positive divergence, this looks like an end of day ramp to get a green close.

While the longer term and much more important SPY 5 min has a significant leading negative divergence. I'll try to discuss what this means for newer members, but there are links on the members' sit, "Understanding 3C" that will help you understand multiple timeframe analysis.

The ES 1 min and TF (R2K) futures are also positive intraday 1 min.