Tactical Update

I'm very happy with the way things are going this morning and just right about on track as I felt it would start late yesterday or today.

I'm not so much caught up in the current bounce, this isn't the real deal in my view, but it is a sign of the real deal which I think will need to pullback from early a.m. enthusiasm and build out a little bigger foot print.

Soem assets and indicators that caught my attention...

 SPY 10 min on my momentum screen, the Stochastics signal is nothing to get excited about, it should be there, the RSI signal is more interesting as is the momentum indicator on the price pane.

 Remember last Friday's utter weakness in Tech/XLK? Well it's changing, this is why I put out the post yesterday for any who are trading TECS, you might want to consider trading around theis area or if you aren't the panicky type, you can just sit through it as Tech will come back down.

There's a large change of character in the 5 min 3C chart of XLK today, that's an exceptional leading positive divergence this early in the day, something is clearly underway here.

 XLF (Financials) did show better relative 3C strength and price strength since last Friday, this is adding to the intraday positive divergence.

Check out the leading positive 15 min chart in XLF.

My opinion is we are already in the big picture, meaning the bearish part/start of a new cycle. THIS MEANS ANY BOUNCES ARE LIKELY TO BE BEAR MARKET "VOUNTER TREND RALLIES".

These bear market counter trend rallies are some of the sharpest, strongest rallies you'll ever seen in any stage of the market so keep that in mind, they are also likely to reverse a lot faster.