Market Update

Beyond the 5 min charts and SPY needing a little work (thus a pullback being likely), the TICK Index gave away this current start of an intraday pullback with plenty of notice and the MSI is clearly showing that these short squeezes are just not able to maintain for very long, of course on a solid breakout that may change and is one of the things I'm interested to see although it really doesn't make much difference moving forward as I suspect we'll be heading to a new lower low and new low on the year after this bounce business is over.

 The MSI is lagging far behind the SPY just over this week not to mention on a longer term basis.

As shown earlier, the TICK Index was the first heads up that intraday breadth was not going to sustain the short squeeze much longer, TICK is now trending down, you can draw new trendlines for a next early warning, well usually you'll get some early warning, this one was just very obvious.

 SPY 1 min went leading negative intraday which is what I suspected would happen as there's more work to be done. As I said several times, I don't want to enter any other bounce longs (other than "Z") unless/until these charts from 1-5 mins are straightened out. Yesterday afternoon showed how quickly it can happen, but it needs to happen before I'd risk any capital.

 This is just one example of the 5 min chart still needing work. As the SPY breaks above Monday's highs, 3C is still lingering lower whereas it "should" in a healthy move, be making a new higher high with price relative to Monday's chart.

 QQQ intraday going negative, although it still maintains a strong intraday chart, most of which was put together in a couple of hours late yesterday.

 However, even the Q's need some work. This 3 min QQQ 3C chart "can" catch up and move to in line, but I suspect it needs price to pullback and accumulation (3C rising) to do that which is why I'm still waiting before entering any bounce longs.

The IWM has some of the strongest signals yesterday on 1-3 min charts as you can see below and ended the day leading positive, the intraday divergence now is nothing that is going to deteriorate this divergence , it's just showing intraday movement which on this timeframe, is what it is suppose to do.

I'd say everything is still as it should be, waiting on confirmation on 1-5 min charts before entering any longs, if it doesn't come, than this market may be in bigger trouble than it seems (if it can't bounce off a week+ base with breadth so badly oversold).