Market Update

So far the The Week Ahead forecast from Friday for this week which was essentially a continuation or finishing the April 2nd forecast for the market last week, looks about right, an approximated 2 days of upside or upside attempts in to this week based on the pace the 3 major signals I have been watching out for , have been progressing.


This is what I'd "hope" to see in the averages, SPX daily....

At some point during the pivot process, we'll likely see price gains start to see smaller candlestick bodies like the daily SPX above, I'm wondering if the more specific forecast for Monday morning below isn't maybe the early stages of that process...

Additionally from Friday's early week forecast based on the concept of 3C signals picking up where they left of was the following,

"The intraday charts point to some early strength or about in line early in the week/Monday, with weakness right behind that as the 2-3 min charts look bad."

Thus far, judging by those indications, the intraday trade from early morning and progressing looks to be close to what we were looking for early today and after.

 The very early 1 min charts as posted Friday had positive divergences, thus the expectation of strength early Monday (this morning), but they had weaker charts right behind them as of Friday, which is why I suspected early strength may give way and now I wonder if it's actually the process of forming the pivot that is unfolding or if there were simply some near term charts forecasting early action.

As you can see the IWM's late day Friday leading positive is starting to lead negative intraday EXACTLY in line with the "Early Monday" forecast above.

 This is an example of what the 3 min chart's looked like Friday at the close (not good) and continue to.

Thus the comment about early morning strength giving way to weaker tone posted above from Friday's very early week (Monday) forecast.

Here's an example of what's going on in the IWM 2 min chart right now, no where near as strong as the IWM 1 min was at the close Friday and deteriorating more now as the IWM starts turning lateral intraday.

And the SPY 2 min also deteriorating intraday.

I think it's early to jump to conclusions, but I suspect there's a chance that this is that process of forming the pivot in which we'd expect to see some smaller bodied daily candles, perhaps reversal candlesticks.