Market Update

As hoped for Friday and as expected all last week, the market is up a bit, the SPY/SPX has broken our above the very obvious and defined resistance range, although that isn't something I expect to last long, it is welcome for now as it allows time to put on core shorts which seems to be exactly what smart money is doing with the moves (a head fake move).

 SPY/SPX above 2014 resistance (in yellow box), this was expected as it's loose change on the ground, very easy way to pick up some extra gains, but I'm personally not interested in chasing change with the environment so deteriorated (recall AAPL from last week).

The charts (intraday) started out "in line" or intraday confirmation, which is fine, they are starting to deteriorate, but it should be enough time to find the best set ups.

The USD/JPY sold off overnight to the far left (1 min chart) on Chinese / Asian data and took Index futures lower, you can see the 3C positive divegrence at the lows around  midnight lifting the pair and the Index futures, this has been a theme the last several days. However the USD/JPY (even intraday) did not make a new or higher high so that's the SPY/SPX making a head fake move on its own as that is such an obvious level.

 ES 1 min overnight (SPX Futures), you can see the "in line status, but there's some recent deterioration as regular hours sets in.

The same is true of 1 min NQ/NASDAQ 100 futures, a positive divegrence around midnight (the same as USD/JPY) and some recent deterioration.

You'll see the same theme in the market averages,,,

 IWM 1 min is one of the few averages that did have a positive divergence at the close Friday, it was in line earlier and is in line out to about 5 min charts, but there's distribution taking hold and migrating to longer charts.

IWM 2 min has a negative intraday signal, it's just starting to make its way over to the 3 min chart.

 QQQ from Friday's negative to inline on the down trend Friday afternoon and distribution this morning.

 QQQ 2 min also seeing migration of an already bad negative divergence

SPY 1 min was in line only at the very open and then went negative, this tells me smart money is thinking the same thing I was thinking Friday, or rather I was thinking the same thing smart money was thinking.

SPY 3 min to give you some idea of the pace it's progressing... you can see it's not terribly fast and that's likely because of the breakout which is some of the best positioning for shorts so I imagine there's not a huge rush to send it lower quite yet.

I'm going through watchlists looking for the best ideas that are in place NOW.