Important Market Update

I'd be hard pressed to call a top here or the resumption of the top off the 10/9 bounce cycle as I like to gather as much data as I can and it is all changing so rapidly that it's difficult to gather it all in one post without something significant having changed in the process of putting the post together.

Lets just look at the typical market update and specifically HYG as it was the method of manipulation I suspected days ago as I saw positive divergences (short term) building in High Yirld Corp. Credit, one of the most well known methods of arbitrage manipulation.

This is EXACTLY why I refused to trade around or close the leveraged short (ETF) trading positions, I learned that lesson with AAPL.

SPY

 The 1 min intraday is leading negative and in line with price, not looking good here.

The 3 min is also leading negative, the only possibility of a positive divegrence on this chart could just as easily be 3C just moving right now and in between forming a deeper negative as the indicator has not turned up and locked in a clear positive divegrence.

 The 15 min chart from the 10/9 low bounce cycle and the top process that had already started, you'll recall I expected some wide, volatile chop before the move down resumed in the averages.

For instance...

This is the meat grinding environment that was predicted...


QQQ

1 min intraday QQQ in line negative with the same positive divegrence scenario as the SPY...

The Q's and IWM as you may recall from yesterday and last night's analysis were the two that had better looking short term 3C charts and why I thought today might see a little upside in those two averages that might last half a day before heading down. As you can see though the dominant feature in the area is a leading negative divegrence.

QQQ 15 min leading negative is developing very quickly for a day or so.

QQQ 30 min and the reason why I expected that we were ar a top and the chop would likely or shortly resolve to the downside as the top looks to have clearly been put in with a leading negative divegrence on an important timeframe.

The 3 min IWM has the same possible positive divegrence, but it's hard to say until it locks in, but overall 3C has tracked and confirmed downside.

The cycle (bounce) starting with accumulation in to the 10/9 low and a leading negative divegrence in to the top area where the price reversal process is taking place and again, it looks like a positive divegrence interrupted with strong leading negative 15 min divergences like the Q's above.

The larger picture 30 min chart showing in line status for the IWM and a clear departure from that as it goes leading negative.

HYG, you may recall, HYG was one of the bothersome divergences forming that made me wonder if there was going to be more manipulation like yesterday's sudden Yen drop overnight sending all the carry pairs higher and futures on NO NEWS AT ALL, just low volume, easily manipulated overnight session.

The long term 30 min going from in line to leading negative, but it was the very recent activity that looked like a small bounce or counter trend move was forming at the white box.

The 15 min chart showing not only the larger distribution at the top before price turned down, but recent leading negative signals right where HYG would be expected to run higher (supporting the market) in it's "U" shaped reversal process.

The 3 min chart shows that process and the positive divegrence that I was watching closely, however that has suddenly turned leading negative.

The 1 min chart shows it the best, the rounding reversal process and accumulation causing it and then a sudden change to a negative divegrence, as if HYG suddenly saw a change of mind and whoever was trying to draw market support from credit, no longer wanted to take the risk of holding HYG.