Opening Indications

So far I think we can say that the concept of 3C divergences picking up where they left off and the questionable reliability of parabolic moves are in full force this morning.

Right now the market is bouncing in parabolic or deeply "V" shaped form off yesterday's open in several of the averages (some differences in relative performance).

Our UVXY position from yesterday is off to a nice start, but lets not put the cart before the horse. First off...

Last Friday's Week Ahead post saw early week strength with not much behind it and weakness through the week, I'll show you as much as I can and we'll see what looks interesting.

 Whether it be this SPY divergence in to yesterday morning (positive late Friday) or yesterday's negative, both picked up the next trading day where they left off.

The QQQ divergence yesterday was so large that I'm having trouble scaling it, but this is an intraday look.

 And this is to give a sense of scale.

 While the market is moving faster than I can type on 1 min charts, thus far Index futures are confirming for the most part as they have done all night like ES above which shows the overnight decline as well as the cash market.

 Russell 2000 confirming...

 One of the first assets I wanted to check was HYG, which gapped down pretty large yesterday, we saw some serious weakness in it last week, Things just got real interesting for HYG / HY Credit and so far this morning HYG is not only down more, but even after a late mini ramp to help NASDAQ 5000, it is confirming as well.

I would not underestimate the importance of the HYG divergence, not just the 3C divergence , but the divergence with price.

However those are all very short term looks at the market, intraday, morning, etc.

Remember this is the cycle and ES (S&P Futures) 60 min chart, this is the path of highest probabilities and we already have the igloo/Chimney price patterns in place, we already have the HYG divergence in place (price )...

If you are thinking of buying the dip, I would say be careful. There's a lot of congestion in the area from different support levels, so you are likely to see bounces like this one...

This is a bounce off of yesterday's open as SPY retraced all of yesterday's cash market. Gap fills have been ruthless over the last 4-5 years. For the bigger picture, the 60 min ES chart above is key, for the nearer term, the HYG price divergence is key.

I suspect we are starting stage 4 of the cycle started 2/2 which is part of the larger October cycle as well.

I'll have some more solid data in another 30 minutes or so as I don't like relying on opening trade for longer term analysis.