Market Update

It looks like that quick plunge to -1000 on the Tick gave me a little time to get these charts together.

Earlier today I mentioned that the market took the ISM reading as "Taper Off" except stocks, but stocks really didn't move like the other assets like Gold, yields, the $USD, etc. they really knee jerked on that report as if, "that's it, QE is ending". I suppose Fisher didn't help much, however right around that 10 a.m. mark I told you that the initial knee jerk was moderating and shortly after I had to do a written-only update because the averages and the Index Futures 3C intraday charts were moving so quickly to the down side.

We have some more damage today than we have seen recently, it will almost always start on the earlier timeframes and work its way out to longer ones so this really needs to be watched because the bigger picture charts are already broken, in fact I'll show you something and tell you what I literally feel when I look at it.

I'll have to look at some other assets and Leading indicators too so there may be some more updates.

It looks like HYG was used this morning for the 10 a.m. market action, there isn't that same strong HYG action we saw in previous weeks where it was very obvious that was what was happening, I think no one wants to be caught without a chair when the music starts, HYG was / is coming off some pretty negative divergences after helping to push the market.

This 1 min HYG chart shows the help at the 10 a.m. area and just after that deep TICK reading there's a little more help, however this is still 1 min and not very strong divergences.

 Like I said, the big picture is already in place, this market is already smoked, the area in the red box is a daily LEADING negative divergence, it's the right side of that area that reminds me of just some very delicate crystal stem ware or something like that, it looks (with the indicators) to be a VERY delicate area.

When I talk about assets I have seen take out a month or a couple of months of longs on an opening gap, that's the kind of delicacy I feel in that area.

 The 1 min shows where we got a little reprieve so I can get this post out .

 Here the 5 min chart for TODAY, that is what is important, has seen quite a bit of damage for today alone.

 This is the 2 hour IWM and again almost right where 3C turns down to a leading negative divergence here, that's just about the area it feels to me like, "The crack in the stem is there and the excess weight is almost like leverage (in terms of weight) pulling on that cracked area.

This is one of several very important and well confirmed reasons I would not feel ethical or able to sleep very well if I told people to chase this other than the few long trades that just have great signals, I might be popular for a bit and then again maybe not, but I think this has been the time to build positions as we have been doing, when Wall St. firms come out and say "Time to sell", you missed the boat, but worse than that, retail won't believe it, I'll try to show you an example tonight.

 IWM 2 min - this is the stronger weakness I'm talking about from earlier posts.

IWM 3 min so it's moving along the timeframes...

IWM 5 min is really a mess, especially damage done today only and that shows more migration down the longer time frames.

 And the IWM 60 min, again you can see where it feels like a big crack in a delicate stem with a lot of leverage/weight hanging on one side pulling that crack.

 QQQ 60 min and a similar picture...

 The 1 min and what I said earlier today as the market and signals were moving fast, almost as if Fisher's comments were released earlier than they were suppose to be,  but the F_E_D would never do that, especially not email them to these firms...

To the right, the little reprieve I figured we were in for so I could get this post out.

 QQQ 2 min and again it's the damage today, the speed, the extent.

QQQ 3 min, the same thing coming down the line.

SPY 2 min is one that was really moving fast.

The damage now moving over to the 3 min in leading negative fashion.

And a sort of much bigger picture of distribution relative to a channel, price actually butting up or kissing the channel on a leading negative divergence.