Market Update

I've been waiting patiently this morning, I hate chasing anything and in Friday's The Week Ahead post, I figured we might see some early week / Monday attempt to regain a little strength, if for nothing else than to widen out the "chimney" area as a straight decline from Friday's close is a bit too "V" shaped, but this morning has certainly been interesting and it looks like the much anticipated Russell 2000 Death Cross has taken place...

 The daily RUT chart , 50/200 m.a. with a Death Cross, which I don't care about, but technical traders do. This is along the lines of earlier comments that I don't like too many people getting bearish and calling a top at once, the market has a way of shaking them loose, so Friday I said I wouldn't be surprised to see a little strength Monday.

This would be the SPX top, "Igloo with Chimney", it really doesn't need to be much wider, but it doesn't hurt and it is especially helpful for position entries, rather than chasing weakness (note the U.O. 's divergence at the chimney on a 30 min chart.

 TICK intraday hasn't been trending, but the tone is definitely weak, the minus -1000 TICK readings this morning are weak, but not extreme, on the other end, +500 shows there's really a bearish sentiment this morning so we should be looking for a short term intraday change in character as noted in the Week Ahead post for early this week/Monday.

The Custom SPY/TICK indicator isn't making lower lows from Friday so that's another hint.

However the main thing I've been watching for this morning is the actual divergences which are starting on 1 min charts like this IWM above as price starts to round and flatten.

 The same is true of the QQQ

 And the SPY

While HYG will be moving lower, it seems to be giving some of that minor support for the market to get this far in slowing the rate of decline and starting to turn sideways which will be enormously helpful.

I'd say stay patient, while I think now is the time to take decisive action as far as positioning, we still don't need to chase anything, rather let these positions come to use. However today is just further evidence that there's not much left of this market than a facade or shell.