Quick Market Update

I personally would not take any positions off the current data, any longs i consider to be "Hitch-hiker trades", meaning they are a means to a greater end and it is really the end we should be most concerned with, if we can make something of the process that gets us there, then I'm willing to take whatever the market offers, but there has to be a high standard.

What I see thus far is the Index futures intraday (all) are either flat to negative 1 min intraday, but at 5 min they show strength and suggest as we have been expecting, a move to the upside.

As you know, 1 min charts in futures are reliable during the trading day, they ARE NOT like the equity averages in which a 1 min divergence at the close is more than likely going to play out the next morning, futures 1 min charts just don't hold up like that overnight. The 5 min charts though carry more weight.


As for the averages, they are a bit scattered, similar to the slightly different futures signals in the 1 min timeframe from negative to in line.

The SPY 1 min is showing CLEAR 1 min afternoon strength as is the 2 min chart, as it stands I'd say unless some significant changes occur before the close, the SPY will either gap up or see intraday strength in the morning tomorrow. The 5 min chart in the SPY has not improved substantially today, but it remains in an overall positive divergence which has been re[presenting the bounce timeframe so the SPY looks pretty good here.

The QQQ is more ambivalent on intraday charts, really closer to inline than anything. The 5+ min charts representing the bounce or late day trade (going by last week's standards) is still bullish for the QQQ.

The IWM is where we run in to the kind of dislocation between the averages that makes me wait it out on the sidelines.

The 1 min through 5 min all look like the IWM wants to pullback. At 10 min however, like the other averages the IWM looks like it has that bounce waiting in the wings.

The DIA 1 min is clearly intraday negative, if it closes like this I'd say there are high probabilities that the same price trend from all of last week and even today to some extent, continues. The 2-3 min charts are closer to in line than anything else and like the other averages (excl. the IWM) the 5 min chart looks like the DIA wants to bounce after a short term intraday pullback.

HYG is not especially helpful in sorting out the 1-3 min intraday charts, although as far as the 5-10 min + charts suggesting the same bounce we've seen since last week, it does confirm as all of the averages (incl. the IWM) do.

For now I am content to sit with whatever positions are open (newly opened) and wait for the short term to clear up before chasing short term calls positions.