The Splitting the Difference- SPX vs RUT post from yesterday seems to be right on as the SPY are outperforming the IWM handily today and I think from yesterday's, Daily Wrap,
"Toward the end of the day there were some pretty solid positive divergences in the 1 min range mostly, yet not much behind them so I suspected that we'd likely see a move higher tomorrow morning , maybe longer. Here's a few examples of what appeared to me to be a weak move getting ready to start... However, no movement or migration to the 2 min chart which would normally tell me to look for some early gains and then a failure of those early gains."
And that's where we are thus far.
Now about those 5 min charts, they are not smoking gun yet, they are not jumping off the chart yet, but they are moving which they weren't yesterday and they are giving us a feel for what underlying trade is doing as they are moving more negatively.
All are showing signs of relative negative divergences since yesterday, so the movement I was looking for is taking place. I suspect we keep seeing this deterioration, but that does not mean we are right at a turning point.
I'm going to try to confirm in as many places as I quickly can and then go from there and decide whether it's time to start looking at those short position entries.
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