Opening Indications

The concept of 3C charts picking up where they left off never ceases to amaze me.

This was from the late day, 3:51 p.m. post yesterday, Quick End of Day Update,

",the IWM is up 1% and ther are a bunch of second day bullish reversal candles, however in to the close there are some 1 min charts not confirming, this is a short term timeframe that doesn't carry that much weight, but the market tends to pick up where these divergences left off. A day tomorrow somewhere in today's range adding to the divergences already put in today would be a signal I would trade for sure."

And in our "New Normal", volatility of .50% to 1% isn't anything really that big of a deal , unlike 6 months ago when we'd go 2-3 months without seeing a single day above .50% either way.

As for the intraday 1 min charts failing to confirm late yesterday, EXCEPT in the IWM...here's a look this morning...

 The 1 min IWM confirmed price in to the close yesterday (green arrow) and wuickly moved right back to that level after being down -.50% or so on the open, it moved quickly right back to the area of yesterday's close and confirmation.

The SPY on the other hand...

 Did not have confirmation in to the close which would mean I'd expect that divergence to pick up where it left off this morning and as you see, the SPY, although moving on the ES positive divegrence pre-market, gapped down in line with the intraday closing 3C divergence.

IWM 5 min is looking really good at this point, prices, although down near 1% right now in some cases, are right in the range I mentioned yesterday and above where if they continue the same rate of divergence in the 1-5 min timeframes, I'll be glad to raise my long risk exposure as confirmation will be higher and in the IWM's case, there's a nice reversal process building up, even though on a daily chart it will look like a sharp "V".

As for early opening action, ES-S&P Emini futures pointed pout a pre-market positive divegrence and it has fired off.

Now, just a bit more patience, I suspect we will get strong confirmation as we have been building that was since the 2nd, which would be one heck of a base and in this volatility, one heck of a move.