Early Indications

So far the early indications look very much like expectations for this week , at least the early or first stages as posted Friday in The Week Ahead. The first step in an oversold bounce is widening out a base to bounce from which would have been an unstable "V" if the market just moved up this morning and kept going without coming down a bit and allowing for a larger footprint for the base, it looks like that's what is happening with the bounce probability still likely.

 SPY 5 min is leading positive, but still a narrow base, as I posted Friday afternoon, I expect a pullback to Friday's intraday lows, possibly a shakeout move below before a bounce has a stable enough base to move up from.

The very short term 2 min SPY chart this morning has a small negative divegrence that should bring price down to the level I expect to widen out the base's footprint and allow for some stronger divergences in doing so, I'll be watching for accumulation on the short term timeframes and for that to move to longer ones like the 5 min as we get closer to Friday's intraday lows.

 The IWM 5 min looks similar to the SPY 5 min above with a positive divergence and needing a wider base and thus an early pullback toward Friday's lows.

So far the 1 min IWM intraday chart is negative on the open and sending the IWM lower.

The QQQ 10 min is also leading positive and also looks like it needs to widen the base's foot print from what would have been a narrow "V" to something more like a "W" base.

And thus far the early indications on intraday charts suggest the Q's will also pullback as well.

So far so good.