Opening Indications

I know this probably seems like it should have been ear;lier, but in fact this is right where and when it should be.

Best of both worlds? The Chinese data overnight sent futures higher, there's a lot to discuss just in that alone because it is data that is relevant to our short term and big picture outlook (I don't want to use long term as it implies the big picture expectations are far off in to the future when in fact we are in them now), but yesterday you knew what to expect in the a.m. action, so the gap up was a blessing for nimble traders who could take those profits quickly and since you already knew what to expect after that from the charts yesterday (and this is something amazing about 3C signals at the close, it doesn't matter what happens overnight or on the open, THEY WILL PLAY OUT) it gives those same traders who took early profits as well as any who might want to hitchhike this bounce higher, a chance to re-establish positions at favorable prices.

Here are the opening indications, basically the market did what was expected from yesterday, early action was going to be weak, I suggested yesterday that anyone who didn't get involved and might want to, will have the opportunity to chose whether or not to do so today, a second chance.

I still think we have more upside to go, I think the Chinese data came out of no where as far as the market was concerned in thin overnight futures trade.

 The DIA has done what was expected of it, it is starting to see a little positive action coming in so momentum on the downside should start falling off, but we'll still need some time for a reversal in my opinion so that gives us time to look at the market, the choices and make decisions that aren't rushed and we're likely to see better entries as well.

 The IWM did what was expected, the signals suggesting the market would see morning weakness were there yesterday afternoon so the early positive signals that are developing should take some time.

The same is happening in the QQQ

The SPY is still in line with downward momentum, in fact just looking at it now (several minutes after this capture), it is just starting to make an effort to start toward a more positive signal.

TLT 1 min intraday is not only for anyone who might be trading it, but between this and the next chart, should give us some information about what to expect from the market moving forward.

The 5 min TLT chart has a pretty good negative divergence, it really should come down, but I'm glad to see this core long position acting so well. When it does come down, it will help the market via the arbitrage mechanism and the way HFT algos read TLT coming down as "Risk on".

The TICK chart too is showing a moderation of the downside action in the number of NYSE stocks.

I would expect that we'd see some bouncing, some moves that look like a take off to the upside and then some that look like the market is about to lose more ground, I think this will most likely just be part of the reversal process.