I suspect that has to do with the fact the DIA is closest to the intraday lows from 8/1, actually just went a bit below, this is more of the stable base I have been talking about since Friday afternoon and yesterday.
Confirmation of a positive divegrence in to the lower prices that build the base is the most important part.
So far the DIA looks the best and I suspect for the reason stated above.
DIA showing positive divergences at dips in price intraday
DIA 3 min chart leading positive intraday at lower prices...
DIA 5 min is by far the best looking and the only average showing this kind of base building improvement thus far.
Looking at short positions like SRTY, they look very much like a market bounce is coming and this is why I opened the IWM calls last week as a hedge.
The 15 min chart has a large positive divegrence that can take the IWM a lot further, but right now there's a smaller negative that's in line with a typical pullback you'd see in a normal uptrend (our market bounce).
Since this is one of my larger short positions I don't want to close it or close it and perhaps add URTY (3x long IWM) without very good reason.
The SRTY 3 min chart shows more detail and the divergence at the highs looks much sharper as it should, however...
When considering what this position is (a position trade), the probabilities beyond a market bounce are solidly in favor of lower prices in the market, thus it's very difficult to close this position without very good reason and thus far I don't see very good reason beyond the calls in place already.
I suspect we will see stronger charts by the end of the day, whether strong enough to enter additional bounce trades or not, that's the question.
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