Market Chart's update

As I'm capturing these charts, I see I'm already too late, that's why I put out the last post warning of a decline without charts as it needed to be timely.

The DIA has clearly been the worst looking intraday 3C chart and it has responded with price weakness to the divergences.

 This is the DIA intraday, you can see price has responded to the negative divergences which have as mentioned, the DIA has seen the worst during the last 2+ days. This "could" get very interesting as there's support at the psychological level of $167 for the DIA, 16,700 for the Dow, which also just happens to be the upper trend line of the large bearish Ascending Wedge top pattern I put out a couple of days ago for each of the average (IWM with a beautiful H&S top).

This is what I'm talking about, support at $167/16,700 is a psychological magnet, but also where the upper trendline of the wedge is, the move above that trend line would be considered a typical head fake move that we have been seeing with ascending and descending wedges for 4-5 years now where as according to 100 years of technical analysis, the price patterns normally break to the downside right at the apex of the wedge (where we are now). So I don't think this is a fake top pattern, I think the two bumps on top are likely the head fake moves that would cast doubt on the larger pattern for any technical traders following the bearish ascending wedge.

RSI is divergent here as well. I say it could be interesting because with  wedge this well formed and mature, it doesn't take that big of a decline to be on the bottom side of the wedge (under support), which gives the chart a VERY bearish feel and these patterns, although head fake for the last 4-5 years, still tend to be real price patterns.

The way the price pattern is drawn on the Dow 30,  it is within the wedge so a small move down puts it below the wedge, not inside it like the DIA.

See the difference? The two humps are inside the wedge, not above it. Although yesterday's close was a hammer right at trendline support of the wedge, looking at 5-day Heiken Ashi candlesticks, there's a big loss of momentum and a look to the chart like a reversal candle (these are delayed on Heiken Ashi charts) is imminent.

DJ-30 Heiken Ashi, at the yellow arrow, there's a loss of momentum with each candle smaller, remember each candle is 5-days. This data cannot be taken alone, for instance you have to consider the trend of falling 10-year yields ever since the F_O_M_C which is with in a larger trend of falling 10-year yields that is already at least the size of the same signal given at the 2007 top.


Back to intraday trade...

 This is what alerted me to post the last post warning of a decline coming intraday.

The 2 min chart is seeing migration as are others so it's distribution at higher price levels as suspected earlier and that's likely why we had no signals the first day except in to the close which gapped us down the following day.

As for the SPY flag, kind of ruined here.

 IWM 1 min was a strong giveaway, it's leading negative now and at first support at yesterday's close.

This is a wider view of the same 1 min chart so you can see the amount of deterioration taking place after 2 days of virtually no signals which as I said before only makes sense to me if there was no point is distributing/negative divergences as prices were still low, the point is to sell in to demand, sell in to higher prices for smart money, it's a necessity because of the size of their positions.

 IWM 2 min also taking a pretty good hit, you can see the accumulation (small), just enough to get the move started to the upside, typical of market makers trying to move assets to VWAP or the fill zone.

IWM 5 min also taking a pretty good hit in a short period of time.

As for the IWM flag, I'm not sure if support is from yesterday's close or the flag support or both, RSI was very divergent at today's range.

 The QQQ has been closest to "in line" the longest, so today's 5 min chart going negative at a range-like are where divergences are seen often was a signal that got me looking at everything as it is a short term, but sudden and important (considering the timeframes) change of character.

This is the 1 min chart at that same range where there was so much damage in the 5 min today.

And the 2 min chart with quite a leading negative divegrence at the exact same place.

 This is a 3-week range in the QQQ's that has seen a total gain of 0.51%, that use to be a mediocre day in the market that was barely worth mentioning pre-2009, a range this long is definitely of interest.

And I'm noticing that TICK has been VERY mellow, most of the range today is in the +/- 600 area, but when sell-offs come, they are strong, this one was -1300, earlier this week I saw a -1700 which may be the largest sell-off I've seen. The NYSE TICK is all NYSE stocks that are advancing per tick less those that are declining, so if we had half of the stocks advancing and half declining the TICK would read zero, at -1300, we have 1300 more stocks falling at that moment, that's an extreme reading, anything above or below 1250 is extreme.