INTRADAY UPDATE

As posted last night, we had some pretty strong after hours positive divergences which I suspect was partly an oversold condition as the Dominant Price/Volume Relationship was one which usually results in a 1-day oversold event with a close higher the next day, but more importantly, options expiration where the max pain options pin has the potential to cause Wall Street to lose a lot of money or make a lot of money. Typically the pin has been somewhere near Thursday's range/close so this isn't surprising.




SPY price is right about in the middle of yesterday's range. At "A" we have a volume event, short term selling climax or capitulation, a bounce from here is not surprising at all.

Typically the max-pain pin moves throughout the day as different strikes are taken out. By 2 p.m. they usually have most contracts cleaned up and the market releases from the pin, today may be a bit different.

As for divergences, they are starting to go negative enough I'd expect an intraday pullback here soon, it may even be setting up the start of a larger negative divegrence to continue a stronger downside move, but the IWM charts are still in decent enough condition that they should be able to bounce and as they say, a rising tide lifts all boats, it may not lift them equally, but I'd expect the market to follow along.

I'll have charts up in just a few minutes, but the dominant theme once again today is "SELL ANY PRICE STRENGTH" thus far.