A Third Day

Usually Wall Street is a little more subtle about what they're doing, but I would think that even the most basic Technical trader can recognize 3 consecutive days of pumping the market in the morning and dumping through the afternoon, it's not just in 3C we see this, but price as well.

I honestly don't recall them ever doing something so blatantly out in the open.

As I mentioned, I was looking for the intraday positive divegrence in the SPY that would indicate the move below the support trendline of the triangle was the start of a Crazy Ivan shakeout, I didn't see it, but it's not that large yet so I suppose there's still time. The only average that showed any kind of small divergence in to the close was the IEWM on 2-3 min charts, but then the 5 min looks horrible, as if it's about to fall off a cliff.

 intraday the 3 min shows distribution in to the IWM's run and at the EOD a very slight positive, however the next timeframe which is where we typically see institutional moves on an intraday basis looks horrible.

The 5 min chart and a deep leading negative in to this move.

The pump and dump of stocks three days in a row and the SPX going green on the year 3 days in a row and losing it is now to the point in which it is blatant. I truly can't decide whether there's a head fake set up as we'd normally expect or whether this is just pure all out panic and they don't really care who catches on.

After all, Yellen will be testifying tomorrow before the Senate Banking Committee, I don't know whether this would come up or not, but the market was more than a little surprised by the last F_O_M_C minutes in which a rate hike was put on the table mid-2014, that's only a few months from now, previously there had been noises about 20145, maybe even 2016, the market is going to be looking for guidance on that issue, it's a much bigger deal than the QE taper.

What I feel from looking at the charts is there's a time to be using price strength to set up positions that are meant for longer term trending trades, in my view that time is most definitely now. Now is not the time to miss the forest for the trees.