Important Update

We have seen a positive intraday divergence growing most of the day in the 4 major averages, some pretty weak, the SPY probably the most respectable. You are familiar with the concept of migration, when a divergence moves from a shorter duration timeframe like 2 minutes to appearing on a longer duration timeframe like 3 and then maybe 5 minutes,  this is telling us that the divergence is gaining in strength, we haven't seen a lot of that today.

The other concept is all new divergences will start on the shortest duration timeframes first like 1 min. For example, if there was a 3 min positive built up on say the QQQ intraday and then suddenly the 1 min chart started going negative, that would be the first hint we have of distribution of that divergence that had been built most of the day. What we don't know immediately is "Why?". In many cases it is the divegrence failing and those who built it removing their money from the market as new information they have learned is discounted. A second possibility is just like with GLD but on a much shorter timeframe, the longer term charts (say GLD 60 and SPY 5 min today) are in need of a pullback to create a larger base (as in the GLD 30 min negative to pull it back to increase the size of the 60 min positive or perhaps a 1 min negative SPY to pull it back to increase the size of the 5 min positive).

We simply don't know what is behind the distribution, but it always shows up as a new divegrence on the earliest timeframes first. If that divergence migrates and destroys the 2 min positive that was in effect and replaces it with a negative, we have a better idea that the positive divegrence that was being built today is being run over, it would likely not trigger. However if we start seeing accumulation among intraday charts as price pulls back due to the 1 min negative steering divegrence, then we know it is likely that a larger "W" like base is being formed.

All we know right now is that there are a couple of fairly severe 1 min negatives that have just really made their mark on the charts.

 SPY 1 min leading negative, it has caused some damage on the 2 min chart already, the 5 min chart remains intact as it was seen just 30 minutes or so ago.

 1 min QQQ is even worse now since this capture, but it has not effected the QQQ 2 min chart at all yet.

The IWM 1 min has also seen more deterioration with the 1 min leading to a new low on the day, the 2 and 3 min charts haven't moved much, but they were never impressive to start with.

DIA 1 min leading negative has done some damage to the 2 min chart, the 3 min chart remains as it was.

I was looking at Leading Indicators when I saw this so I'll update them as well.