Market Update

This market is obviously getting more skittish as it should, but it makes it difficult to tell whether we just need to be patient with it or whether the rules have changed and Wall St. simply isn't going top put the kind of money they ise to in to a bounce, where they may have gone out to 30 min leading positives, perhaps they won't go any further than 10 min or 15 min weak positives. There's just no telling as everything is dynamic and in constant motion.

I still have Leading Indicators to look at as well as currencies and several other assets and charts, but as we can see, a good signal is a good signal, I could have taken a +30% gain for less than a day, but I believe the rest of the longer GOOG charts are good signals as well so while patience is important, that doesn't mean there isn't anything out there with an edge.

 DIA 2 and 3 min (above) are leading this morning, so they are working on some early strength.

 The 5 min is also leading - so far, so good, that brings us to this 10 min which I would normally consider the minimum timeframe that must be positive for a decent bounce. With the other timeframes all positive it may move this 10 min and just eyeballing the chart I'd say a little more time going sideways down here wouldn't hurt either and actually facilitate the process.

 IWM 2 min perfectly in line this a.m.

 However 3 min , 5 and 10 min are all leading positive of course with the 3 min looking the best then 5, etc.

 The 15 min has some positive action and that's good, I'll be looking at closing an SRTY position some time soon because I believe IWM will bounce.

 Q's 1 min looks like price got as little ahead of itself this morning. The 2 min chart agrees so I'm looking for a pullback here.

At 3 min we are leading positive so there is constructive behavior from last week still standing. It's the 5, 10 and 15 min that still need some work.

I have thought all last week and the week before that the strength AAPL and QQQ provided was used to distribute, but in smaller block size, I continue to think that has been the case especially with this morning's 1 min signal.

 QQQ 15 needs not only a more positive chart, but I believer a bit more time as well to get a stable footing here.

 SPY 1, 2 3, 5, min are all looking better this week, it seems those averages that are staying in the zone or range are seeing much better signals, those that pop out are being knocked back to the range. This is very common behavior for accumulation and distribution, that's why we look for the flat ranges, it's like price at VWAP.

 SPY 5 min

Again the 10/15 min charts are all the same. This is where I don't know if it's just a matter of some patience which I would normally suspect given the price pattern isn't fully mature, in fact the reversal process is quite young here, but I don't doubt that Wall St. would be skittish about putting much in to the market to effect a bounce, I think this is why currencies and arbitrage trades will be very important, use other methods to lift the market than brute (cash) force.

∫When I get other updates up, I'll try to tie them in, but so far these tie in well with the Index futures that have seen steady, growing strength since last night and for the first time in a week or more.