Market Update

There's a short squeeze in the IWM Most Shorted Index and as you can see by the performance on the day (DIA +.14%, SPY +.25%, QQQ +.37% and IWM +.65%) it's causing the IWM to lead.

All of the averages are coming up to some kind of intraday (at least) resistance and I'm really hoping the IWM backs off, but it is a short squeeze...

I pointed out earlier this morning how the R3K's Most Shorted Index (I created) was outperforming and leading the market.

I'm thinking between intraday resistance and the fact they can't get SPY Arbitrage even close to neutral, we can get the pullback in the IWM that we need to set up so many short term long positions.

SPY Arbitrage is actually negative around $.70 so it is pulling downward on the SPY.

There are intraday negatives too that should help, otherwise we're likely to get a premature breakout and to me, the risk in chasing it or taking trades that didn't do what we wanted them to do, would just not be worth it so I am hoping the IWM is about done showing off here and lets the market fall back a bit to set up those positions.

GDX did break below the bear flag so I'm watching that one now as it's entering the zone of interest.

All of the Index futures look like they will pullback from negative 3C divergences, the IWM looks the worst (3C negative) so that's good.