Quick Update

If I didn't know otherwise, I'd swear today was an options expiration pin day the way price is acting and very short term charts.

Interestingly,while I haven't finished my "Update" analysis, the pin-like action is in short term timeframes such  as 1 min like yesterday, however unlike yesterday, assets like HYG are not being used to hold the market up or as in yesterday's case, rescue it from lower prices as HYG was accumulated on the 1 min chart in small size (shown earlier today) right at yesterday's intraday lows, effectively stopping the downside bleeding. Today that's not the case.

 The more important timeframes like 5, 10, 15 mins. see continued damage which I'll show you as well, this is the most important thing for the downside reversal, while the short term intraday 1-3 min charts are the most important for the timing of it. However as I did mention QQQ short earlier, it is a chart that just does not look good, I would not be surprised in the least if it were to see a very ugly gap down in the a.m. or even in to the close.

As for USD/JPY which got a big boost this morning on USD strength/Yen weakness and initially lifted the Index futures until they realized less than an hour later that the GDP print was exactly the kind of economic developments Yellen was talking about in saying interest rates could be raised before April (implying April by saying "A couple of meetings" and defining a couple as "two", meaning the April meeting, with the caveat that incoming data could cause them to act sooner. I'd say 5% GDP and the best Q3 GDP print since 2003, qualify, thus the move in Index futures did not last, however the move in USD/JPY has lasted, but I don't think for much longer, whether that be before the close or not is hard to say, but I don't think it will be too far one way or the other from the close.

USD/JPY has a VERY sharp negative divegrence, DX has a sharp negative divegrence and the Yen futures have a very sharp positive divegrence.

Seeing these, I doubt the USD/JPY holds up much longer.

As for Index futures, the best looking is ES, but NQ and TF literally look like they are about to fall off a cliff, their 5 min, especially 7 min and 15, 30 min and beyond are so ragged, they are worse than they were yesterday.

I would have to say, that I'd have little problem entering shorts in either QQQ or IWM based assets at the time.

Typically the large caps are going to be the last to fall and hold up the best so I have less interest in the Dow , ES does have better 3C relative strength right now, but this can change ina very short time.

Like I said, and I will show you, IWM and QQQ look to be in imminent danger of falling off a cliff. Perhaps USD/JPY gives them a push?