When I spoke of a head fake move (last night included), I suspected it would take most of today, perhaps even longer. If you had time to read the two posts I linked, "Understanding the head fake move" for weekend reading, you'll understand this is more psychological and tactical warfare against retail traders than anything and that means the moves tend to be extreme or extreme looking because they need to look that way to swing emotions and there's no good reason to run one without accomplishing that goal. There are other goals such as accumulating at a low cost with a lot of supply and those are some of the signs we look for. We can see these signs early on, much earlier than the end of the head fake move.
So far we have some early signs, they are very young and so far still pretty small, but this is what a larger divergence builds on.
ES intraday 1 min positive in to lower prices
QQQ 1 min positive in to lower prices
IWM 1 min positive in to lower prices
SPY 1 min positive in to lower prices
The VXX / UVXY trade opposite the market so the first relative negative divergence in to higher prices is confirmation.
Ultimately I'd say we have a lot more to go in terms of downside and scaring traders out of positions, the reversal process because very rarely do we see "V" reversals and much stronger positive divergences, but this does appear to be a start.
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