Market Update

I'd say that yesterday's afternoon positive divergences and "Picking up where 3C left off" has worked again.

There's already signs of weakness and while it's too early to expect the 5 min charts to have made any definitive moves, there are some hints sprouting up.

First the typical levers and some of the late day moves that suggested a bounce today... VXX, TLT which was losing ground near the bond market close yesterday and HYG which is up and acting as a ramping mechanism, but still in to distribution like yesterday.

 TLT's late day divergence yesterday which sends TLT lower and yields in support of the market (higher) today, still not a big divegrence and the 5 min TLT is still in line on the upside trend.

VXX negative 1 min

HYG neg. 1 min, but it's price that matters as a ramping mechanism which is up today.

As for the averages...

 SPY 1 min is in line.

 like yesterday, the 2 min chart still has not turned in support of the 1 min chart and this may be the undoing of the 5 min charts, but...

As of yet, that hasn't happened in SPY.

 QQQ 1 min late day positive and losing a little steam intraday today on the gap up.

 Again, the 2 min chart has no support, this is why I suspected a move higher early today that may start to fail not so long after.

The 5 min chart isn't telling us anything yet.

However...

 The IWM 1 min never went positive yesterday and is leading negative intraday.

Again the 2 min chart here looks horrible.

The one difference...

There are early signs of the 5 min chart possibly coming apart so we will keep looking for this in the other averages and see what assets are maybe coming in to a target zone for a decent trade set-up.