A Quick Visual...

In reference to my last post... EOD Update Here's a quick visual of what I'm anticipating based on the charts for tomorrow. I'm using the charts for URTY (3x long IWM) l as a proxy for the broad market because there's not much difference.

 1 min intraday, even though we are leading positive, the late day action has a small negative divegrence and as you know 3C charts almost always pick up where they left off the next day, so maybe a gap down in the morning which is fine...that's part of the SCBO (Second Chance Buying Opportunity).

 The 5 min chart of URTY is leading positive in a big way and a lot of that came from the head fake move we anticipated yesterday in this post... Broad Market Update

Once you have a divergence like this, it's a pretty solid bet.

I said we'd need to see a move below yesterday's lows as a head fake move and a reversal process as well as accumulation in the reversal process, I think the flying leading positive coming out of that 10 min chart at the reversal process qualifies as what I was looking for.

And having a 15 min chart like this that is leading positive with a broad foot-print is pretty hard to imagine failing.

Now, putting a bow on it.

You may recall an earlier post from today as to what I thought the close might look like, it was QQQ Follow Up posted at 1:57 p.m.

This was the specific closing candle I drew, which is was what I thought was the highest probability close for today...

Note what price looked like on a daily chart when I posted this (the last green candle to the far right), a bearish Engulfing candle-as ugly as could be. I said I thought we'd end the day not only with higher volume, but with a bullish Hammer Candlestick which is a bullish reversal and I drew an example in yellow to the right.

Now, here's the Daily closing candle for the QQQ today...

That's a Doji/Hammer, bullish reversal candle and the higher volume than yesterday makes it about 2-3x more likely to work as a reversal candle, so we went from the ugliest candle to almost EXACTLY what was predicted hours earlier based on the charts we were seeing at the time.

How does this tie in to the intraday negative on the URTY chart above?

When you have a reversal candle the next day often gives you a confirmation candle and they are often (in this case) "Bullish Engulfing Candles", to form a bullish engulfing candle the market would HAVE to gap down on the open and close higher at the EOD, it would look like this...

I drew in the example to the right in yellow, it may not look EXACTLY like this, but the main two points are an open lower which is what the candlestick in yellow depicts as it is a hollow candle, not filled in and a close higher, that is bullish confirmation of a reversal candle and may very well explain why the intraday 1 min URTY chart is both leading positive (bullish) and has a small negative divegrence that should pick up where it left off tomorrow morning, such as the kind of gap down needed to form this exact Bullish Engulfing candle, one of the strongest forms of confirmation.

So in conclusion, I'll be setting alerts for the next few hours and then tomorrow as they go off, we'll check the asset, see if it has the divergences it was missing today, here's an example...

Ultra Long BioTech 

 The 10 min chart looks great, this looks like a long, but I need the short term charts in line positive as well.

The 1 min chart is positive, but it needs to migrate to the next timeframe and connect with the 10 min...

At 2 min we have no positive, thus I could have put this out as a long, but for high probabilities, all of the charts from 1-10 min should be positive.

As you know, smart money doesn't chase so a slight pullback would allow that accumulation to occur just as it did today with the head fake move below yesterday's Tweezer Bottom.

The whole thing fits together beautifully. I'm going to confirm or try to confirm on some other charts, assets, futures, indicators and put in my alerts for assets like this one, a pullback to $61.60 or so may be all that is needed to turn this in to a high probability long position.