The forecasted afternoon bounce on an oversold basis that was expected to proceed A.M. weakness, based on where the 3C charts left off at the close, looks closer than ever right now (intraday), here are a few signals in addition to what I've already posted...
ES/SPX futures intraday positive.
As you know, I often find early or cleaner signals in the leveraged ETFs, take SPXU above for example which is a 3x short S&P-500/SPY, being this 2 min intraday chart has a negative, it suggests a short term pullback, being it moves opposite the SPY, that would be confirmation of the SPY intraday bounce expected.
The IWM intraday 2 min positive along with TF futures intraday positive and...
An intraday 1 min negative in SRTY, the 3x Short Russell 2000, again being it moves opposite the R2K, it's another confirmation signal.
I'll point out that right now and as expected, these are all weak signals that fall along the lines of the 1-day oversold condition/bounce laid out last night.
One group I think might be worth a look is Financials. I do like the look of the Financials Short position and a bounce in XLF/Financials would allow the trade to come to you.
As far as the larger picture in financials and the highest probabilities based on the charts...
Well this 60 min XLF/Financials 3C chart is not pretty. Note not only the large relative divergence from the left side to the right side of the chart, but the more recent leading negative divergence to the right, thus a short in to some price strength would seem to be worth a close look.
As for the second part of the posts' topic/title, HYG 3C charts have been one of the easiest giveaways of what the market is moving toward. Yesterday I posted a series of the HYG charts, the asset looks to be clearly falling apart as it typically is used as a market ramping lever as HY Credit tends to lead and stocks follow. Thus the charts below are suggesting HYG is about done and close to a move lower, again, HY credit tends to lead, stocks tend to follow...
HYG intraday- nothing exciting, but after the 1 min chart...
HYG 2 min from the last small base/cycle (1/15-1/20).
The HYG 3 min chart with 3C migration at the same cycle with the same leading negative divegrence now...
And the 5 min chart showing the same.
As well as the 10 min chart.
As for HYG's longer term trend which has been making a series of lower highs and lower lows, a downtrend....
The 60 min chart, I expect HYG will on be heading toward a new low and dragging the market lower with it as it isn't providing that ramping support that we so often see.
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