Market Update

Not much has changed since the last market update except the SPX has had a bit more time to create something more sustainable, still in the neighborhood of an intraday move, sort of reminiscent of Tuesday's call a couple of hours before the close that they were building the market out for an end of day ramp, which actually was used to distribute in to, but the point is the duration of the move.

I compare the SPY vs the 3x Short SPX, SPXU here.

I don't see any cause for taking any action even in a trading portfolio unless you were an aggressive day trader. So I see no compelling reason to move or change anything, maybe a hedge, but even there I'm not sold. This may be an opportunity to manage MCP today, but we'll see about that.

Take a look for confirmation and perspective, remember that SPXU is the inverse or SPX bear ETF with 3x leverage, so the opposite of the SPY/SPX.

 SPY 1 min intraday, a more rounding shape, a process and a positive 1 min divergence.

The SPY 15 min is more important to me at this point than a 1 min chart. There's a negative divegrence to the far left that killed SPX upward momentum and threw it in to a range, then we had that spate of F_O_M_C, Quad Witching, Window Dressing, and year end performance and tax trades.

The leading negative 15 min divergence from this week is the standout feature and confirmed, this is a new leading negative low and what's interesting is that it's reading more distribution on a much heavier volume day than before today, so kind of serious.

The SPXU (3x short SPY) which is an open long that was added to Tuesday, right in time to catch today's move . The intraday accumulation is apparent at the EOD trade in which the market ramped Tuesday and saw distribution in to the closing ramp, SPXU confirms by showing accumulation in to the opposite move of the ramp, a decline. Intraday though we have a 1 min negative here confirming the SPY.

At 5 min we have a clear process, a large reversal process, excellent 3C signals through the process, even that chimney in the right spot.

Comparing 15 min charts, SPXU has a long term positive divegrence starting with the initial divergence and adding to it at the yellow reversal process, Again of note, just like the SPY hitting a new leading negative low on the same timeframe, the inverse SPXU is hitting a new leading positive high on the same timeframe, this is excellent confirmation.

All things considered, right now I see no reason to change anything as far as the short positions in the trading portfolio, there may be some interesting things for longer term core shorts like the BIDU's of the market and maybe some other minor management tweaks, but I'm very content to be still here and just keep observing, looking for opportunities and keeping an eye on the character of the market.