Market Update

This is the migration I was talking about yesterday and this morning, it's very clear on the IWM which is interesting as the IWM leads the market typically.

 IWM 2 min negative since USD/JPY $102 was broken above yesterday morning.

This is migration of the divergence to a stronger timeframe at 3 min

And this is it migrating to the 5 min chart, obviously it's a process so that's what I wanted to see today, if it continues which gives us information.

As far as the USD/JPY, another negative divergence, a bit smaller...

 USD/JPY after the last post of a positive divegrence this morning, which has turned negative, but now there's a change of character and the $USD is weakening more intraday than before.

$USDX intraday now starting to lead negative.


This is the USD/JPY vs Es (purple) correlation and the disconnect which has reverted back to USD/JPY a number of times, that would suggest the broad averages have a little downside to go just to revert back to the normal correlation.

USD/JPY vs. ES 5 min chart.

As for the averages, this is probably a little old by now as we are moving a bit faster, but...

 IWM did move to in line, not a positive divegrence as the earlier update asked.

The DIA continues to look worse intraday.

The QQQ negative seen earlier looks worse

And the SPY negative.

I'll be watching the Yen and $USD more closely as well as the VIX and our watchlists, which were very useful in telling us something was up early, even before the USD/JPY $102 target baceame obvious.