Quick Market Update

The "Early strength" in Friday's forecast for Monday followed by afternoon weakness, I believe, even though we've seen some already in the form of gap fills for the most part, is not over yet in my opinion, here's a simple example.

SPY 1 min intraday with a small positive to the far right, we saw this in the 5 min NQ chart/Futures last night with the broader picture being a negative roll over of 3C, which is why I termed early strength as more technical than having a real fundamental base.

I'm starting to suspect it has more to do with pulling back assets like TLT and VXX which are showing signs of accumulation (negative for the market), yet they need to pull back to continue building those positive divergences (also mentioned last night and this morning in 30 year treasury futures), and I suspect as they build their strength, that's what is behind later (afternoon) weakness as I had put it Friday afternoon.

The key assets that I'm paying most attention to are TLT, or Treasury futures (long end), VIX futures and VXX and HYG.

I suspect the "technical" early strength, has more to do with building bases up in TLT and VIX futures than anything else, which would have a pretty negative message for the market, but that's already pretty clear from the charts posted Friday and really clear from the 5-10 min charts posted last night in which the trend of 43C deterioration is about as clear as you could ask for.