Market Update

If you held your noise and jumped in today at certain areas, you have to be feeling pretty good.

Here's the MSI (My custom Russell 3000 Most Shorted Index) vs the R3K.

 MSI and R3K rollover as the short squeeze runs out of steam, this is not good overall for the market internal structure on a decline, a very dangerous market has been set up here.

The distribution today along with leading indicators, credit, Index futures and especially the VIX, make charts like this, not surprising at all, even though we aren't use to seeing them in to a close.

The QQQ, as I said, it looked the best intraday until COMPQX made $4000 and looked like it would hold, then things got ugly, I even showed the same in AAPL which was mentioned as a position today, if anyone got in there, I'm a bit jealous.

And the IWM where the real weakness has been, whereas normally in a healthy market, the IWM should be the leader, the strongest.

Today is one of those days in which price is very deceiving and likely downright dangerous.

Take a screen snap of IWM price  before 3:20 and you have a perfect, textbook view of a short squeeze.

Speaking of 3:20, my TICK Update at 3:19 today in which I said...

"You really have to pay attention to the TICK for intraday leading indications...If you compare TICK to IWM in the yellow box, you can see problems developing for market breadth/market, to the far right is an individual signal as TICK seems to make a significant low and looks to be heading toward breaking the day long trend."

Well...

 TICK below the channel, the second red arrow is what I was concerned about, but even before then trouble was building. The TICK is one of the most underutilized indicators.

Here's the TICK post on the SPY chart.