Opening Indications

Another record for the books as volatility picks up, which is commonly seen at turning points (between all 4 stages).

This morning's ECB gains at the European open mentioned in the A.M. Update have not only been erased, but it seems that the SPX has just seen its worst opening minutes of trade since at least 2012.

Here's where we are now...

 This was the European open at the green arrow, the scaling looks much different before the cash open as you can see on the A.M. Update charts. Not only have we retraced all ECB QE rumor gains, but a whole lot more and while there are a few things floating around out there, there's no specific catalyst in the news that is any more or less interesting than hundreds of others that have had no effect on the market.

 The NYSE TICK hit lows of -1350 on the early sell-off, which is quite extreme, this is also a very parabolic drop and you know I don't trust them so I doubt this holds all day, but it's an interesting start for the day and not a very good one.

The 3C charts from last Friday in the early timeframes essentially picked up where they left off, they got really ugly in the closing minutes of the market on Friday as you can see in Friday's Daily Wrap 

 It wasn't just the 1 min charts, but the 2 min charts as well, here you can't see the extent of the late day divergence because price has caught down to it this morning and we are largely in line or seeing 3C price // trend confirmation.

There are some small 1 min charts trying to find a toe-hold, but for now, it's mainly downside confirmation.

I'm still looking for the 5 min charts to turn clearly negative. As you can see they did have a pretty good positive divergence or "Gas in the tank" for an oversold bounce, however the 5 min chart got ugly way too early and this was seen in detail Thursday, making me think that this bounce may have been called off due to some new information that we are not yet privy to or perhaps we are and just don't recognize the impact it is having on Wall Street, the market is all about perception.

So while it's still too early to expect to see movement on the 5 min. chart of any substance, it won't be for long.

I'd think a parabolic drop like this morning's will correct to the upside as parabolic moves tend not to be very dependable, but we'll see where things go from here. Again, this is why I chose NOT to try to trade an upside move and rather decided to leave my shorts in place and use any upside move to short in to, add new positions or add to existing positions. In this manner I see it as a win win, either the market bounces and the trade comes to you on your terms or it doesn't and your short positions continue to work for you.

More shortly...