Market Update

Here are the charts so far, you'll notice intraday a lot of distribution in to higher prices, but I still think the IWM has a strong enough chart that it can bounce and all of the volume yesterday that was picked up by market makers/specialists (as they are required by law to provide a bid and ask and accept any market order at that bid/ask) at lower prices will likely be off-loaded at higher prices/bounce.

Keeping this in mind, "if" the IWM comes down in price a bit today and "if" there's an intraday positive on that pullback, I may go ahead and add the rest of the call position in IWM that I was considering adding until yesterday's market just fell apart.

 SPY 1 min in line yesterday and negative on today's bounce.

The 5 min SPY has a relative positive divegrence from yesterday's lows/short term volume/capitulation event. This is more in line with the IWM, not nearly the same quality of divergence though.

 The larger trend when you take the noise out on a 10 min chart

QQQ also seeing negative divergences in to today's bounce.

 The same is seen out on a 3 min chart today.

 on a 5 min there's a minor relative positive divegrence so again these are not very good quality divergences, but they are the first time this week that they have had anything positive like the IWM has held all week.

 The larger picture since last week's positive divegrence that warned us that we'd see a bounce this week and its leading negative status overall right now.

 IWM intraday also in line with the move down yesterday or confirming it and a negative divegrence on today's bounce.

The same on a 2 min chart

The 5 min chart divergence has been in place all week, it just hasn't launched. I was going to add to calls on a move below support as long as it was accumulated,  it was not accumulated yesterday, thus the reason I did not add.

I have a feeling we will see some intraday downside, if it is accumulated, I'll likely add the rest of the calls for IWM.

 The larger trend on a 15 min chart...

This is the macro trend of the IWM H&S top so if you look to the far right, you can imagine a bounce from where we are now and it would look very much like the downtrend from the right said of the head in March/April, so the macro trend is very bearish, but it is normal to see bounces within a downtrend just like pullbacks within an uptrend. At this point, these bounces are very useful for entering or adding to short positions as well a short term swing trading, you have to remember, this is a top pattern, it hasn't begun a real stage 4 decline yet.