Market Update

Although 3C is going to take a little while (depending on the timeframe) to readjust to the heavier volume, it seems like there's an intraday positive divergence or two here and there, which is not unexpected, in the first post of the day I mentioned that it's still very early, not that this means the market action is any better, it's just typical to have a couple of different intraday trends through the day rather than 1 solid trend. Remember the three trends are up, down and lateral, last week we saw some days with early upside or gaps and then lateral, the last trading day of the year we had the tightest trading range in more than 6 years in SPX futures.

I'm just keeping an eye on everything and seeing what the new year is bringing. With Window dressing, because of the t+3 rule, they can add positions that have done well and look smart even though they may have only held them a day out of the entire year, it still pops up as a holding and this is why Window Dressing" is called the art of looking smart. However in many cases there can be an adjustment as early as today, perhaps they feel that stock that performed so well and want to make it look like they picked it, actually looks to be toppy, then they can sell it and no one will be any wiser until the quarterly SEC filing comes out and that can be 30-45 days later than the filing deadline so always be very careful of trading off the quarterly reports as many traders do, by the time they see what's in the report, the fund has often changed holdings dramatically so they are trading off very old information.

NYSE intraday TICK is one of the more useful tools today, you can see a bit of a trend change taking shape intraday, although again this chart itself is very early so I'm not jumping to conclusions.

 The NYSE TICK shows a clear downtrend channel, but recent readings are in the upper range of that channel.

The intraday 1 min SPY has a positive divegrence, but not much of a reversal process even for an intraday move, so it will take some more observation.

The3 min SPY is very clearly negative in to the ramp  from Tuesday as it was pointed out in preparation hours before the actual ramp, but otherwise we have downside confirmation of in line.

I see some intraday negative in short term VIX futures (VXX), but not much in HYG, so it's not looking like an arbitrage play.

really all that seems to have happened is the rising Yen has lost upside momentum and that means the EUR/JPY lost some downside momentum, so far kind of a stutter step.

Nothing really too interesting to see here in this regard so far.