Market Update

For the rest of the day, it's going to be watching just about everything I can to make sure we're on track or to look for anything unusual. As you know the market broke down not long after I closed 1/3rd of the VXX position at a small gain, if you ask me if I regret it, the answer is no I don't. We only get to see a very thin sliver of the market and of what's really going on at any one time and if something is out of place (whether you have a position that is too large or not), it's easier to preserve capital than it is to make back losses.

That being said, so far the SPY divergence (the problematic and also one of the smaller) has cleared, TF has not yet, but the R2K or rather IWM has to be taken in to consideration. VXX hasn't totally cleared, but in that timeframe on a move like that, it's normal for a little lag or profit taking.

 This was the earlier SPY, small positive in white, that has cleared as the SPY and 3C made new lows.

 This is the same SPY chart as above, just zoomed out to scale, you can see the accumulation before the market broke to the upside last week and the degree of distribution presently, it's actually quite impressive, but news of a deal would throw incredible volatility in the market really fast, that's why I want to be extra careful, extra watchful for anything that looks like a group of Capital Hill Staffers are out placing trades on inside information (there is a reason they are one of the most successful groups of traders).

 The VXX is lagging on the 1 min a little, but this isn't too bad considering how parabolic that move is becoming.

 As I mentioned, when looking at the TF/R2K Futures, I have to consider the IWM chart and it's right as rain.

 TF 1 min still hasn't cleared, in fact it almost looks like we will see a bounce off this last move down.

The 5 min chart has made a new low, ultimately this is going to be more important so I want to se more progress here, I'll feel better about strange intraday signals.

VIX futures with the same signal as VXX 1 min

However the 5 min has a nice base, a nice leading divegrence so I'm still on my toes, but these longer charts definitely make me feel a lot better.

The catch is, all new divergences start on the fastest timeframe.