Market / IWM Update

Right now, as I said earlier, most averages have done what I thought (really know, I don't mean to be egotistical, it's just you see something happen 1000 times and of those 1000 times it happens 1 way 990 times, you have a pretty good idea of what's suppose to happen) they needed to do and that is buy more time near the lows to build out a bigger toe hold. THIS IS EXACTLY WHAT WAS MISSING FROM THE MARKET AT THE EOD YESTERDAY, the SPY and Financials looked one way, but just starting and the Q's and I believe the Dow and Tech looked the opposite. 

There was no solid confirmation between SPY timeframes and no confirmation between averages.

So they need to pull both of those things together and most look like the SPY.

It's positive on short term charts and it bought more time lateral and made a larger "W" base-like formation, but confirmation on the SPY's own timeframes is just not there yet and it certainly isn't screaming and next to the downside signals, it needs to be.

The IWM actually looks like one of the better averages, but I think you'll see what I mean...

 2 min IWM shows late afternoon weakness yesterday on the 2 min, but not as bad as the previous week. Today it has built on to the positive divergence, but this is a 2 min chart

 The 3 min shows the afternoon weakness we have been seeing and the 3 min chart, but the scale of today's positive divergence isn't close to yesterday's.


Now the 5 min chart is going positive which is significant improvement, but it's still not standing out.

Then you compare those signals to...

 The distribution of the 15 min chart because we are in the big picture now.

Or the leading negative new low of the 60 min chart.

For me I think it's going to take something screaming "Long" to compete with these negative.

I also don't see much I want to chase short down here, this is why we set these positions up ahead of time and try to do it when smart money is doing it, when we have strong signals.

Our core short position (mostly short) tracking portfolio added +11% today only thus far so we are in the right areas and very few of these have ANY leverage at all.