Important Market Update

This post late yesterday after watching market action seems to have hit the nail right on the head.

"The one thought I keep having centers on the IWM. We had two good days up and not the kind of breakout that it needs to get retail pumped. I've seen this a lot of times, it's kind of like trying to get a car out of the sand in which you have to generate momentum by putting it in reverse and then drive and then reverse again to get a head start on the next swing forward.

To me, it looks like the IWM needs to put it in reverse before it can make another shot at forward or up in this scenario."

The evidence?

Ot started building on the last market update, it has continued and I don't think this is just for a closing p.m. ramp.

 DIA 1 min intraday with a leading positive 3C divegrence, this needs to base a bit more, but we will soon be ready to enter new trades in my opinion, likely later today.

IWM relative positive divegrence

Even the QQQ which has had the worst underlying 3C performance for over a week is showing a leading positive 1 min and...

There is migration to the 2 min chart so the divegrence is strengthening, it appears to be the real deal and not just some intraday move. As I said, they may not want to invest much in this cycle and who can blame them, but I doubt they'll let it slip by with so little ground to cover before they reach their target.

SPY has migrated all the way out to the 3 min chart.

Even the Index futures (as per the last update stated) are seeing positive divergences.

 ES (SPX Futures) 5 min

NQ (NDX Futures) leading positive 1 min

TF (Russell 2000 Futures) 5 min

HYG-High Yield Credit is sloppy in many timeframes, but still holding at the 5 , as we saw with the market, we see with HYG, last Friday is where accumulation picked up, it is leading positive.

And the VIX Futures are starting to go negative intraday.

If the SPY Arbitrage trade is activated as HYG and VXX are starting to suggest, then out intended TLT trade would be in the perfect place being the 3rd asset in the arbitrage.