Intraday Market Update

It looks like yesterday's afternoon bounce that was tempered toward the end of the day on the suspicion that prices were moving a bit too high above the Friday Options Expiration Maximum Pain Pin, was probably correct.


From what I see, prices are right about in the range from yesterday afternoon before the negative divergences intraday toward the closing hour looked to be in place to halt further price gains as the ,max-pain op-ex pin is most often in the area of Thursday's close.

There are some small steering divergences right now that would suggest this continues to be the case.

 SPY in the area of yesterday afternoon's price range, just before intraday negative divergences were seen , apparently trying to slow price or even knock it down a bit.

Te SPY intraday looks to be near the bottom of that max=pain pin range and looking to move a bit higher in to it as this 1 min positive right now shows.

Also, HYG is being brought in to help intraday.

 HYG which is in the red, has the same intraday 1 min positive divegrence as the SPY as it (the SPY) has probably reached the lower boundary of the max pain op-ex pin range.

 Otherwise HYG charts like  this 2 min are still deteriorating as we saw yesterday. In other words, it looks like HYG is being used on an intraday basis to help out in moving the market off the low end of the op-ex pin range.

The SPY 5 min shows nothing more than in line with the move down

This is the QQQ2 min with the positive divegrence yesterday morning after the forecasted a.m. weakness and afternoon strength, but it looked to get a little too hot toward the close, a bit too far from the max-pain pin, thus the late day negative divegrence as the Q's remain right in the area of where it looks like they were trying to keep the Q's yesterday.

The same is true for the IWM as the SPY, except it looks to have fallen a bit deeper out of the range and has a bit stronger of a positive out to the 3 min chart.

I suspect the SPY and IWM will move up and back in to the max-pain pin range at least until 2 p.m. or so. The Q's seems to be right where they need to be.

This is all pretty much exactly as we expected yesterday afternoon after the morning and afternoon forecasts played out, but maybe were getting a little too hot on the upside.

Remember, you can't even tell where the apparent "Yellen" walk back comments were made, there's probably a reason for that having to do with the max-pain pin.