With this morning's decline and more importantly the TICK now breaching the extreme levels of -1400-1500 consistently, if we get a bounce from this area which may end up looking like a hammer on a daily chart at the close, the one thing missing for a decline that holds, volatility increasing, will have ben introduced.
It would or could also introduce a "V" shaped reversal for an intraday bounce and perhaps a bit more if it's not run over, which is a very weak reversal base, almost guaranteeing on its own a failure without any other signals, but there are many more signals that continue to point to the real trend to be down, despite any bounce attempts.
Today's intraday NYSE TICK is solidly at the extreme level of -1400 to -1500, that's the kind of selling that could induce capitulation or panic in which case, any of these weak divergences could easily be run over. Now you can understand why I would not even consider trading this long as standing back puts me in a win/win scenario either way so long as I don't introduce needless risk.
This area of volume for the SPY looks interesting considering the TICK readings.
The SPY is maintaining a weak positive divergence thus far.
As is the IWM, but what I really wanted to show was the nature of a reversal here would be a sharp "V", which is almost as bad as a parabolic move in terms of trusting it for any period beyond a very, very short one.
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