Market Update

Right now I'm mostly trying to confirm that this is the end of yesterday's accumulation which was nice and clean, an easy trade set up as long as you could move quickly this morning.

Because we are in a transitional area for both price and 3C coming from yesterday's intraday positive divegrence, which I would say was about the right size for the kind of move we saw at 10 a.m. making me think it's highly probable ISM was leaked and yesterday's buying or accumulation was for today's release. If that's true, then what I said about POMO is nearly certain, it's been reduced to sponsoring counter trend trading opportunities, a far cry from what it was.

In any case, there's no opportunity to short the market here, that's why I left trading shorts in place, yesterday was the last good trade opportunity (long/closed this morning).

So for now, I'm just trying to confirm market direction and what's going on there and then I'll look for the opportunities that best fit that.

For example, IWM was one of the best looking divergences and started a day earlier than any of the others.

 IWM started late Monday, then through yesterday and now in line on the downside intraday 1 min.

The 3 min chart puts yesterday's divergence in perspective and thus far we are pretty close to confirmation. This is where we want to just let our short positions work for us and wait for the next opportunity to pop up.

 Since the divegrence never made it to 5 min on any average, it had a roof on it and this is leading negative.

I would guess that if today were adding to yesterday's divergence (if it is it's very sloppy) then this 5 min chart would start to improve, it hasn't.

Of course the intermediate cycle 15 min is very ugly, a Channel Buster, the distribution expected with a Channel Buster and IWM moving down toward the downside momentum area inside the channel.

So there's a lot to look at, but I don't want to make any assumptions.