Index Futures Update

I think one of the best indications we have right now for a larger "W" base (other than the fact they'd likely need to make it larger just to get the same mileage out of a smaller one from several months ago because of the increasingly bearish nature of the market) can be found in the Index futures themselves.

You may recall some of these charts, the VWAP ones I posted Friday, Market Update .

 This is a 15 min chart of SPX futures, ES. I'm using ES as an example, but TF and NQ look the same.

Note the positive divergences in the same areas as the averages, the second one is stronger than the first as is often the case when we have 1 single base rather than 2 smaller ones and the distribution at the area that would be the middle or the high point of the "W" is very small, as mentioned earlier it does not look like the kind of distribution we see when there's a risk off sentiment of, "Sell on any price strength", it looks much more like a steering divegrence meant to keep prices in a range until the accumulation/reversal process is complete as smart money will try to fill at the lower end of the range as I demonstrated Friday with the VWAP charts which I'll show again.

 This is a 5 min chart of ES, the positive divegrence alone to the far right suggests "something" is up as we use to trade these alone for short term trades.

C signals that are very useful and show up after 2 pp.m. when the max-pain op-ex pin is lifted as most contracts are already closed by then.

 This is the WEEKLY VWAP for ES, I pointed out in the post linked above from last Friday that we have 3C distribution at the upper standard deviation of VWAP which is where we'd expect to see it and a positive divegrence at the lower standard deviation where we'd expect to see it. VWAP is an institutional investors tool used to determine what kind of fill they received from a market maker or specialist who is filling the order, for a buy they want to come in at VWAP or lower, for a sale or short sale they want to come in at VWAP or above.

Since we have a new week, this is the weekly VWAP for ES thus far on a 1 min chart...

Note the distribution early today as we are at the upper SD of VWAP and now we are approaching the lower standard deviation, , it looks like the SPY just bounced off that lower S.D. of VWAP as well, they may be trying to close right around VWAP which is pretty typical.

I'm going through Leading Indicators right now, I'll have those out shortly