Additional Charts

These charts are diverse, but they all still tell the same story, a short term bounce and in the big picture, it's hardly worth mentioning, but as a part of what to expect this week, it has utility.

First some of our Leading Indicators show the difference between signals for a short term bounce and the big picture which argues for using any short term price strength as a market gift to short in to price strength in a number of assets as these bounces have less and less meaning as we move further in to the big picture, note I didn't say "Closer to the big picture", I believe we are already firmly planted in the start of the move that will be known as, "The beginning of the end" for the market action that has dominated since the 2009 market lows.

 The 1 min HYG chart is not only showing a 3C positive divergence suggesting the arbitrage asset move higher, but it is seeing relative strength vs the SPX which is what actually triggers the SPY arbitrage to help move the market higher, but take note of the timeframe at 1 min and remember that this is a VERY short term outlook.

 Looking at HYG on a 30 min chart doesn't show us the "Big picture" in terms of "since the 2009 low", but it shows us this last leg up from June 21st as we discovered it 1 day before the bottom and reversal to the upside failing and getting ready for the downside move.

Commodities have been out of sync with the SPX for a while, now they are leading the SPX suggesting a short term bounce as you can see on the 1 min chart, but...

Again at 30 mins we can clearly see this last leg up has been VERY WEAK.

Our sentiment indicator for professional money shows the intraday or short term leaning toward a near term bounce, but...

Again, the most recent leg up since the 6/22 lows has shown itself to be exceptionally weak and fragile.

HYG 3C charts...

 The VERY near term intraday action shows a negative divergence, this is part of the "early a.m. or first part of the day "weakness" that we saw last week and that we had clear signals for as noted in the last post on Friday.

 The 15 min HYG chart represents the short term market bounce we want to use as a tactical entry to our longer term strategic positions

And HYG Daily chart shows the extreme weakness in credit more recently and what has essentially become the start of the market move lower.

ES Futures (SPX E-Mini Futures)

 4 hour clearly showing the last leg up off the 6/22 lows being MUCH weaker and moving us to the edge of the cliff.

DIA 2 min showing the exact same at the same rally point, this tells us this leg has been used for what I would call, Extraordinary distribution" which is so extreme, I don't recall ever having seen such large and lengthy signals, basically signals that have never been seen before as we are in a market that is unprecedented and the F_E_D is to blame when we see just how bad the downside is and perhaps the longer legacy is the damage it will do to the newest generation of traders that expect the market behaviour including that centered around the Bernanke PUT  to be "Normal".

 The IWM confirming the ES and DIA signals in the same spot

 The QQQ confirming the same

The SPY's 3C chart and RSI showing the weaker underlying action of the stronger second leg price action.