3C Charts Update

I wanted to get this out earlier , we've seen the negative divegrence forming all day, but as it got worse I hoped to get this out, I was just in the middle of collecting Leading Indicators.

Whatever the outcome of window dressing and I imagine that's a tough call for any manager with everything else geo-politically as well as the new F_E_D dynamic, this is what we are looking at in 3C, I wanted to show you that trend expectations have not changed, not for the very short term (VIX accumulation as a timing signal for a market downside pivot) or the larger picture of the February short squeeze being used to sell in to or short in to by smart money.

I think a lot of correlations will change and this is why I've said for some time now, "Whoever figures out the new dynamics first, wins", but you need an edge, you can't follow moving averages and hope to beat institutional money and I think we have that edge.

 SPY 1 min intraday just seeing more and more distribution and it looks like it's taking hold so the oversold bounce from yesterday's lows when I closed the IWM puts looks to have been just that, Pros were buying blood in the streets and selling in to a bounce, they didn't change their mind and go bullish on the market, certainly not after yesterday's events.

 The migration of the divergence off the bounce or oversold bounce on SPY 2 min which was not there earlier today as it was in line you may recall.

The 3 min was negative, it just got worse, so there wasn't enough accumulation of the capitulation lows yesterday to reach a 3 min chart, that told us it was a small position relatively speaking and that's the reason I'd protect put profits, but not take the risk of being long, just not worth it.

The additional leading negative today just shows there's more selling since this never went positive yesterday so today's selling was added to what was there yesterday.

As far as our very early Feb. prediction or expectation that the very strong rally up would be used to sell/short in to for the next trend (down) which would have more volatility as the past 2 have shown, is confirmed above on a 60 min SPY chart for the Feb rally/short squeeze. Stage 1 was the head fake/base , stage 2 is mark-up, stage 3 is distribution/top and stage 4 is decline, that's what this week has largely been about, tracking the specific turning point via VIX futures as well as some other things like HYG, etc.

So you can see the major damage on the chart is still there, nothing has shifted overnight that would cause me to lose a wink of sleep, in fact I'm trying to get as much funding as I can set up in my account to take advantage of the next trend as fear moves a lot faster and further than greed.

Markets fall harder than they rise and faster.

 QQQ intraday 1 min getting worse, remember I wanted to see PCLN fall below a trendline lower, well this is what needs to happen for that to happen, but we'll have to look at the charts again and see if PCLN is still a potential trade, but remember it was being considered using options which means, SHORT TERM.

 QQQ2 min intraday seeing migration of the divergence, the bloody lows bought by pros are distributed today very clearly.

 The 5 min shows a lot, but you can just look to the far right and see the leading negative increased today out on a 5 min chart.

 And of course our big picture in the Q's, leading negative distribution as was expected on the Feb rally , which we not only called while everyone else was bearish and thinking SPX 200-day was going to be broken next, but we also called that it would be a rally that is distributed , it is a specific cycle set up for a specific function, a means, not an end.

IWM intraday has been horrible leading negative and it's reflected in price, that's why I keep picking on it and that grew worse today.

Same with the 3 min seeing migration today.

 Again leading negatives today on the 5 min nearly at new leading negative lows.

And the big picture of the Feb rally, that divergence should be screaming at you, those are the ones I NEVER IGNORE.

I'll have leading indicators out after the close, but so far so good, if we do get some bounce signals which we don't have yet except in some specific assets, we can hedge easily and make some extra $$$ doing it, if not then we stay the course, keep looking for the specific timing of the pivot and load up the truck if you haven't already.