MARKET UPDATE

Looking at the basic charts of the averages, I'm kind of surprised that we are even still holding on here. Of course I did see the breadth and internals last night very oversold, which was the basis of today's forecast for early weakness, but a likely close in the green.

The charts just don't look very good. However we do have thew breadth, we still have some leading indicators and we do have the charts of the Index futures which are showing a more positive intraday environment building, along the exact lines of yesterday's forecast for today. Again the Index futures longer term charts are also looking pretty darn bad. I'm guessing we are still in this area of chop for the time being, but things are breaking down as expected.

 THis is the general area of "Chop" I'm talking about, it's a failed breakout from the descending triangle, the second failed move this month off a base put in place. However as I said above, while things are deteriorating badly I wouldn't say we are done based on  at least the oversold condition and probably the Leading Indicators too as a few are yet to confirm as seen yesterday.

This is not an ideal trading environment, but there are opportunities, especially in to price strength.

 SPY 1 min trend is pretty clear...

 And the 5 min chart from the last base, also pretty clear what has been occurring in to higher prices as we expected.

 And the bigger picture, this is obvious, serious deterioration of the stage 3 area from the October lows cycle.

The Q's intraday look similar so far...

 As for the 5 min chart, the same theme as the SPY, selling in to higher prices.

And the longer term view or "big picture", I'm sure you can make out 3C trajectory vs price.

 The IWM is showing some sign of a possible base being started intraday for the bounce forecasted for later in the day as we did not expect it in the morning, this based on the deeply 1-day oversold condition from yesterday.

Also as mentioned above, the Index futures look a bit more like last night's forecast for today (early continued weakness and later strength with a likely green close on the day).

This is the Russell 2000 Futures 1 min chart, note the positive divegrence building.

I'll have more for you shortly as I'm still poking around various charts.