Market Update

The Index futures are set to bounce off the overnight-regular hours lows put in around noon time, the market averages as well. For the most part the intermediate chart that are leading negative are still in the same position, but sitting in the same area like a pause, not improving, but not making new lows either as if there's a temporary pause, which could be op-ex related or as  I mentioned last night the "Igloo with Chimney" that was in place on a smaller, tighter reversal process is now lost in the lateral noise of the last 5 days so a new head fake (Chimney) might be needed or seen before we get a downside reversal, which I think is best timed for Tuesday of next week as the PBoC is (regularly) scheduled to inject liquidity to offset maturing bonds, this would (if they refrain) make it 4 in a row and the fears of PBoC tightening along with BOJ complete ineffective policy will certainly give rise to Dan Loeb's "Global Economic Concerns" as the main stream media (financial) is just picking up on the story that we saw with our own eyes as it happened 1 week ago and a week before the media picked it up.

 This intraday capture of the SPY shows an intraday positive divegrence to bounce the SPY off yesterday's close.

 It seems pretty obvious there's a max pain options expiration pin in progress, these typically last until the 2 -3 p.m. hour and then most contracts are closed and the market starts acting how it wants, the price action is not what I find most useful, it's the underlying trade (3C) action during the late afternoon as it is typically picked up where it left off as the new week starts.

 SPY 2 min inrtraday confirmation of a bounce to stay in the range.

 The 3 min chart is where it turns neutral.

Last night I said I wanted to see and expected to see a broader footprint/base in VXX/VIX futures, so far today this is on track

The Most Shorted R3K Index vs the R3K shows yesterday's squeeze is overand the MSI stocks are underperforming the broad R3K.

 HYG Credit is one area in intermediate charts that is not paused making a lower low on this 10 min'

 And this 15 min

With the 30 min already in bad shape as seen last night.

The moves in credit became more obvious yesterday as JUNK Credit (with no manipulative correlations/connections) started breaking down instead of acting like a mirror image of HYG.

That action in JNK continues today

The longer 5 min chart.

Again I suspect the most likely scenario to be some false breakout as we are very "rangey" now, it just becomes too obvious and too many orders above make it too juicy a target not to strike before packing up, Tuesday still seems like an ideal day for the market to bring the fear, assuming China stays on this tightening course.

I'll check some individual assets as well, I have something interesting I'll show you after market as it is interesting, but not immediately useful.