Looking at Leading Indicators and the averages, I suspect the market is looking for a toe hold here, I think it will need to make a second intraday bottom before it can do much. This could be about an op-ex max pain pin or more likely, just the larger reversal process I mentioned earlier.
The SPY and other averages were pretty much destined for weakness this morning as 3C charts pick up where they left off and yesterday they left off very ugly meaning this morning we'd see weakness which was what was posted in the
Closing Market Update
"Something changes and it looks like we'll likely open on a weak note tomorrow, I wouldn't say that the gas in the tank is fouled yet, but I wouldn't be surprised to see a negative open"
So I think that is where we are at. The divergences from yesterday's intraday charts have made good on their implications, now something new is developing as you can see on the 1 min SPY chart above. I suspect a pullback to intraday lows at the white trendline would be necessary for any move beyond lateral / consolidation.
The SPY 5min chart has seen damage as 3C makes a lower low, however...
It's still not there yet as was talked about in yesterday's closing market update.
The QQQ 1 min also making good on yesterday's divergence in to the close.
However the 5 min chart still not broken yet.
And the IWM chart still not broken yet so I would not assume anything is a straight shot down as we have seen this morning, there's still work to do and it looks like an intraday jiggle is coming soon.
No comments:
Post a Comment