Market Update

I'm going to skip the overnight futures because I don't think we need them thus far. We haven't changed our stance on this move in a week, it has either been flat and not gone against us or has moved in our favor, I see little reason to change it now without objective data suggesting we should do so.

Here are the interesting charts just from the averages this morning. As far as a.m. trade and Friday a.m. trade, it is the least reliable in my view as it has the most to gain from unnatural price manipulation, the regular pre-market order runs from the retail crowd placing orders before heading to work and on Friday the addition of options expiration, however the concepts that would suggests our analysis is correct and moving in the right direction are pretty clear like the head fake move that typically happens in a VERY visible area that technical traders watch and it happens just before an expected move (expected by us, not retail); XLF this morning did exactly what I suggested yesterday as an entry, we are yet to see if it pays off, but the fact that we even knew what it would do suggests we are probably on the right track.

QQQ

 I still don't love that the 3C divergences have not gained any real strength, but I'm not surprised either, here the Q's intraday is positive on the gap down.

 Here the 5 min QQQ 3C chart shows a stronger recent ROC in 3C as was seen in futures yesterday.

The SPY 3 min is also showing a much stronger 3C positive divergence ROC so there seems to be somewhat of an overall trend, this led me to suggest yesterday that perhaps Wall St. knows something about early next week's politics that they have suddenly grown more comfortable with.

SPY 5 min overall character in this range and a slightly stronger 3C positive ROC

The IWM is a great example of several concepts.

First we have the rectangle range that technical traders expect to break to the downside, but we saw accumulation on a downside head fake move which gave us a head fake move and reversal to the upside.

The measured move (using the rectangle) suggested a new leg's target of $107. Then a highly visible "Bullish" Ascending Triangle (very popular with Tech. traders) forms, I VERY much doubt it is coincidental and looking at some intraday charts I can show you the steering divergences that formed it, purposefully in my opinion. 

Tech traders expect it to break to the upside, since cycle accumulation  is so weak, I theorized that Wall St. would actually use retail to help them push the market higher, thus the ascending triangle. The measured move for the triangle on a breakout is $110.

Here's this morning's likely head fake move below support of the triangle with a positive 3C divergence.

Again, it's early so the data is not as solid as later and longer charts, but all of the concepts fit.