Thursday, August 28, 2014

Opening Indications

Pretty much true to form, despite the Ukraine/Russian "Prop War" which certainly will make investors nervous over a long weekend, despite the Q2 GDP popping higher and Initial Claims falling back below 300k, yesterday's closing 3C direction is influencing the market this morning, having halted the overnight slide and from the pre-market lows with a 3C positive divegrence in ES, we now have this...
ES positive intraday divergence is lifting ES in regular hours as is the norm of this 3C concept.

In any case, all of the majors except the IWM had intraday positives in to the close, but don't forget just how ugly we are in this reversal process...

 SPY closing 3C intraday positive divegrence helping out this a.m.

However serious damage done last week and more this week.

Leaving longer term 30 min SPY in a deep leading negative position.

The QQQ 60 min looks even worse...
From the base early August/accumulation to a pure leading negative 60 m divergence.

Yes a pop and head fake to the upside would be great, but I'd urge you to take these signals very seriously. You don't want to miss the forest for the trees.

No comments: