EOD Market Update

Today was actually pretty quiet, I suspect this has a lot to do with tomorrow's 2 p.m. release from the last F_O_M_C meeting as well as the BOE's minutes release tomorrow. There's not much more on tap as far as US macro-economic data except MBA purchase applications at 7 a.m. I'm hoping market internals will have better data than today's intraday trade.

Remember the F_E_D knee jerk reaction, this is on almost anything F_E_D released, especially F_O_M_C. Very often the initial knee jerk reaction is faded as it tends to be the wrong reaction so don't make assumptions too early.

The SPY and XLF have the worst intraday 3C performance and that is now clearly visible in Financials performance today.

 Financials underperforming today.

Also the SPY as mentioned, even the Index futures show the same as TF and NQ are pretty much in line with ES with a negative divegrence.

 Both NASDAQ and Russell 2000 futures looks like this NQ chart intraday, pretty much in line, however like the SPY divergences which are quite sharp, ES is also showing...

ES intraday

 HYG and it's market manipulation abilities are being tested, we've seen recent deterioration in HYG's underlying trade as it was once in line or leading before the bounce took off. Today HYG is lagging the SPX rather than leading as it has been.

VXX/Xhort term VIX futures continue to add positive leading divergences and...

Intraday vs the SPX (prices inverted to show the correlation), VXX is performing better than it should, not making lower lows as it should which is often a sign of demand for protection.

 USD/JPY has been the market leader as we expected this morning, but like AUD/JPY which led yesterday, late day negative divergences are starting to set in, this is almost entirely $USDX based.

$USDX intraday with a clear negative divegrence, a move lower here sends USD/JPY lower.

And the MSI is also starting to underperform the market as Most Shorted Stocks can't maintain a squeeze beyond the open.

It seems the Q's are benefitting from AAPL's move >$200 as well as the NDX's break of $4k yesterday. The IWM is much flatter which is surprising considering how it has not met anything more than the very lowest price target set about a week ago while other averages are well beyond the minimum, into the medium and some at the expected target level like the QQQ.

Index futures have not seen any let up of their negative divgerences on the 5 and 15 min charts so that looks like it will be an influence on the transition to the next step which should be lateral, but the minutes release tomorrow may create some volatility, I'll be looking at this area tomorrow for either profit taking on certain long positions and/or maybe some option entries as I prefer to enter them on price extremes.

We'll see soon enough if market internals have anything interesting to tell us, otherwise today has been a bit boring.