Market Update

It took a while to get the NFLX post out, but I think it's worth it.

As far as the market, as seen earlier today the R2K Index futures look pretty good intraday underlying trade and actual trade is right in line with Friday's expectations of continued consolidation early Monday and perhaps a change late in the afternoon as the 5 min charts were not negative on Friday.

"My initial impressions are for some sort of consolidation Monday, perhaps just early in the day. The consolidation can be through time or price. I don't think it will last long and if there are well set up call positions, they should be at their best Monday. The reason I don't think a consolidation will last long is because the charts to support a longer consolidation aren't there, the process is mature."

The 5 min SPY chart is gaining 3C momentum in to the gap down today, the Q's look REALLY horrible, but even intraday charts are improving there, the 5 min IWM never confirmed the gap down and stayed in a leading positive position and the DIA is seeing some strong charts like the 3 min leading positive, so far this is exactly in line with Friday's expectations for today or early this week, but that was Friday and we still have to keep an eye out for any changes that deviate and are cause to rethink short term analysis.

Although VIX futures are up as they should be due to correlation, the underlying trade that was falling apart late last week is worse now. VXX and UVXY are showing similar signals.

I'm not saying intraday trade looks strong by any means, it doesn't, it just has improved. I don't expect we will see strong underlying trade at this stage.

Probably the best looking asset that can move the market at this point is the FX pair already mentioned, USD/JPY, the same one Goldman has a current short call out on right now as it is at the low end of its range. The 15 min positive is the USD and 15 min negative in the JPY that suggest the USD/JPY moves up and supports the market (and stops out those who took Goldman's advice)  are now divergences found on the 60 min charts so they are stronger now.

 $USDX 60 min futures leading positive...

The other half of the currency cross (carry cross), the JPY with a leading negative 60 min chart.

This is probably the most bullish asset for the market right now. I'm going to look around to see if there are trades that have outstanding probabilities, but as I said above, this is not a strong looking cycle and as such, any positions taken from here must look outstanding on their own.