Market Update

As I said in the last post, I expect the IWM/Market to make a turn to the upside soon, here's why...

 IWM intraday positive divegrence, although there has been some intraday charts seeing more damage than I'd expect, if it weren't for the $USD dump I might not think much of it.

This is a 2 min IWM chart with a bit more damage than I'd expect.

In addition, since the 12:15 Dollar dump, the NYSE TICK has made 4+ forays in to the -1000 range where it hadn't been previously, in fact the opposite. Normally that still wouldn't be that much of a concern.

 While it would take a bit longer to reach a 15 min positive like this IWM chart, I also don't want to discount what has been building since last Friday because of an event that took place a couple of hours ago, however there are other things I find concerning (for short term bounce positions and to make sure core shorts are back in lace in time).

In other words I don't want to discount what we've seen all week over one or two events today, but the market is dynamic and I do want to pay attention to any sudden changes that are out of the norm as we won't know what's causing them until it's too late, 3C is our window in to what's going on in the market.

 Again, I don't want to dismiss charts like this QQQ 10 min positive divegrence/base too quickly or cry wolf.

 This 2 min SPY didn't see any damage while other 1 min and some 2 min charts saw more than I'd expect intraday, thus I'd like to give them time to average out the bumpiness before getting too concerned.

Again a SPY 60 min positive divegrence isn't something that just pops up, it took time to create and I don't want to change my mind on it, but that Dollar dump was not the only odd event today.

The DIA still looks good intraday 2 min

 As well as the longer 15 min chart, but as I said it would likely take more time to reach a 15 min chart, yet the 2 min chart is still fine.

This is the other event that is a bit concerning, just before the $USD dump, High Yield Credit which has been supportive of a bounce, saw strong intraday distribution...

 1 min HYG

This migrated to longer timeframes meaning it was a strengthening sign of distribution as the 2 min is deeply negative on the day...

As is the 3 min. I'd expect HYG to hold roughly in line for an upside bounce and the timing of the divergence next to the $USD dump is odd as well.

In any case, we have the IWM and rest of the market starting to make a move higher, I'll likely close the IWM call at some point soon, but mostly because of the expiration, I will be watching the charts to see if they keep up with price or show more concerning signs.