Market Update

There's not a whole lot to do right now unless you want to go long, I have a large tolerance for risk and I wouldn't dream of it, however as this move rolls over, then there's lots to do so until then it's monitor things., look for set ups, manage open trades, etc, but I really try to be patient and wait for odds and probabilities to realign.

Earlier I said there were quite a few differences between relative performance or the divergences put in place today. First I think we can probably rule out a larger "W" divergence, it doesn't look very likely.

Next I want to show you the strongest timeframe for each of the averages so you get an idea of the relative performance for this jiggle/bounce.

First I'll use the Q's as an example showing the strongest timeframe and then the very next longest timeframe and you'll see the one after the strongest is not a contender, it doesn't have the strength so if 3 min is the strongest, that will be it, the 5 min won't be much of an influence.

 QQQ 2 min is the strongest timeframe, the divegrence here looks very strong, but consider it's part of a day and it's only a 2 min chart, in reality it's not very strong at all.

Now the next timeframe after 2 min ...

 QQQ 3 min is in line more or less, there's no positive divegrence here at all, so you can see where the strongest timeframe is and when divergences stop dead in their tracks and get a feel for the relative performance moving forward the next several hours.

IWM 3 min is the strongest, still not as clear as the QQQ 2 min, but a slightly longer timeframe so I'd put these two on par with each other.

The SPY (as mentioned earlier) has the best looking intraday divergence and this is a 5 min chart for the SPY that is leading positive, it should see the best relative performance.

Now the DIA which was one of the weaker earlier...

 This is a 2 min positive, not that strong and not that big of a divergence, what I thought I'd also show you is the roof on this move, for instance take the stronger 5 min DIA chart below...

I don't know how far the DIA 2 min positive can travel with a leading negative 5 min chart that is a much stronger divergence and much stronger timeframe as well as a much larger duration divergence.

I hope that gives some perspective.