Since I'm getting ready to put all the captured gold, GLD, GDX and NUGT charts together in the PM post (I'm leaving silver out for the moment), I just wanted to get a quick update out. The action still looks to be all intraday jiggles, but as I mentioned before, while I wouldn't trade it personally, it can be good for other things like set ups, if we get good confirming data. Most of the time we need some movement to see what's really going on in underlying trade except for ranges as you know.
As soon as I get the gold post out, I'll do a check of currencies, treasuries, credit and leading indicators.
The SPY 1 min positive has turned the average to the upside, but there's no migration of the divergence (strengthening), the 2 min chart is still negative.
This is the SPY range earlier, these are almost always indicative of something going on, accumulation or distribution, this one was intraday positive as shown earlier and lifted price rather than a lateral correction through time, the 2 min chart still hasn't joined the 1 min in turning positive.
The Q's have a triangle like pattern (as of this capture), that will be read as a bullish consolidation/continuation pattern because of the preceding trend, however as such a common technical price pattern, it's also a great set up for a head fake move for a downside reversal, keep in mind the scale of this triangle when considering the downside move, but also keep in mind we are only dealing in intraday charts at the moment.
The 3 min QQQ (remember earlier I said the Q's and DIA were the two that were not positive) is seeing even uglier action out to the stronger 3 min chart so this does suggest if we saw a breakout on the upside from the intraday triangle, it is likely to be a distribution event / head fake move and as such, a decent trade set up, but we'll cross that bridge when we get there.
DIA 1 min was pretty much in line earlier, nothing special, it does have a small leading positive right now so I'm guessing this intraday leg is not done.
The 2 min DIA offers NO SUPPORT at all and is in fact the opposite in a deep leading negative divegrence so any intraday upside here is likely to be distributed as well.
The IWM is where there is some more interesting (still intraday) movement, the 1 min chart went positive earlier and is in line now.
This however is the same 1 min chart zoomed out to put it in to context, the area is in a leading negative position with an intraday positive inside of it, this too would suggest intraday upside will be distributed.
The 2 min IWM chart is slightly leading positive and certainly confirming for now.
And IWM 3 min is about as far as it goes. This isn't a very big deal, but as I said it may turn in to a tactical advantage or at least some good analysis.
The Index Futures are mixed sort of like the charts above, usually when there;'s a risk on or off move, everything looks similar and there's not a lot of dispersion, here that's not really the case.
No comments:
Post a Comment