Quick Market Update

The charts of XLF and FAS in the last post showed a pullback to form at least a right shoulder for an Inverse H&S bottom formation, the first half of the right shoulder (a rally to the neckline) is already in place, the second half which completes the right shoulder is a decline that is typically symmetrical with the left shoulder's size. There is a chance there's a complex Inverse H&S as seen more clearly on the FAS chart, that's two left shoulders and typically these patterns are symmetrical and if as I suspect, they are not there by coincidence, then probabilities are high that the creator of the price pattern will likely want this to look as textbook as possible which means as symmetrical as possible.

To create these shoulders r finish them, the market needs to pullback and this update is to tell you that all of the major market averages have an intraday negative divergence EXACTLY where it is needed, for instance, exactly as FAS approaches the neckline, but before it can break out.

Look for some market downside, I'll be putting out ideas  AS LONG AS I THINK THEY ARE WORTHY OF THE RISK, IF NOT, THEN I THINK IT'S BEST WE MANAGE OPEN POSITIONS AND WAIT FOR THE REAL WORK TO BEGIN OF ENTERING CORE SHORTS AFTER A MARKET BOUNCE.