All of the EUR/USD analysis and what it means to the market still holds so I'm sitting tight and looking for that last bit of strength and the increasing volatility that almost always marks a change in trend.
If you are worried about it, take a close look at the EUR/USD post out just before this one.
Some averages look like they'll outperform others, like SPY and DIA. I thought maybe this would be a bounce in to the close, but it looks like it has to wait until tomorrow.
If you've seen the 3C concept of the charts pick up the next trading day where they left off (even over a 3-day weekend), then you'll understand the bounce and if you understand the charts from yesterday's Intermediate Market Update and EUR/USD, you'll understand why a little patience may go a long way here.
IWM looks similar to SPY.
The increase in volatility would be characteristic of a trend change and a downside move, this is where I'd add additional position that I wouldn't today.
The biggest danger in my view is that these divergences get run over, whenever volatility increases and you have a divergence that is NOT well established (a half a day or less of positive is not well established), you have an increased chance they get run over.
I want out get this out ASAP so that's all I'll include and it's all that matters for now.
For short or inverse shorts this is a slight edge, mainly it's an edge for option players looking to open puts as I have been waiting to open 1 or two more and some other positions like XLF.
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