Market Update

While the trend remains firmly negative, as I usually warn, "Wall Street will never make an emerging trend easy for you to hop on", they shake the tree in every which way to throw off the most number of people at any one time, but I have little doubt lower is where we are headed, yet I do believe we'll have some continued near term price volatility.

The 30-60 min charts posted this morning of the Index futures are in my opinion the highest probability resolution and that is firmly and clearly down, but in near term trade, I think we se some bouncing about, especially in the IWM/Russell 2000.

I wish I could demonstrate using the Index futures as it would be much faster, but they are pretty negative for the moment so I'll cover a few near term timeframes in the averages that suggest some price volatility, it's not anything I personally would chase or try to trade, I'd be aligned with highest probabilities as I am and as you can see in this post from this morning...Opening Indications

I'd use any price volatility I could to my advantage, such as a pop or bounce in Financials to short in to, but I'll do my best to keep you up to date with confirmation.

I still haven't gotten to Leading Indicators yet, so I'm sure they'll provide more color, but I don't think anything will change the big picture implications which are firmly negative.

 SPY intraday negative and in line on the downside-1 min

The 3 min SPY shows a clear negative, but on the downside there's a small positive divegrence building, I suspect it needs more work and a wider base to do much. Remember, when volatility increases, so do the chances of short term/small/weak divergence getting run over.

 QQQ 3 min showing both the negative leading and a small positive to the far right which I think needs to come down again to at least the white trendline before it is of any use for an upside bounce and even that, as I said, I believe just to be volatility in price to shakeout trades from the larger trend.

 IWM 1 min negative and in line on the downside today...

IWM 2 min negative with a small positive divegrence building.

This is partly the market's way of working off potential oversold conditions and Wall Street's way of keeping everyone in limbo, unable to hold positions as they are shaken and stopped out. Go with the longer term / big picture trend and avoid being shaken out.