Market Update

The talking would be jumping for joy this morning on the mist GDP at 0.2 percent coming down from the Q for previous of 2.2% and consensus of 1%. Amazingly, the F_E_D or at least the Atlanta F_E_D as for once made an accurate forecast with their GDPNow real-time GDP model which forecast 0.1%.

Why the market is not jumping for joy this morning on horrible news should be fantastic market news, I would like to say, "is beyond me". However as I have mentioned, this entire April move, the stage III area of it, in the head fake area of it all seem to coincidentally time to today's F_O_M_C.

In fact, as was shown on April 2 the triangles in the market they have broken out we're not even organic, they were constructed purposefully as I showed evidence of on April 2.

So instead of saying, "this morning's reaction (or lack of one) is beyond me", I would simply point out a few charts after giving you a feel of the general intraday tone so far.

Intraday so far generally look something like this...

 IWM 1 min with 3C weakness leading to downside and a small positive divergence this morning, nothing VERY impressive.

ES 1 min deterioration since yesterday , all through the overnight session in to this morning's GDP print. Interesting...

Note again, the small positive divergence intraday, but not of much consequence.

The NYSE TICK Index pegged an extreme of -1700 on the open end is in a rather mellow area now as if to put the market on hold which would not be surprising in front of the FOMC.

However if we take a bigger picture perspective that is based in our April 2 forecast and what was to happen afterward including last week's Head fake move (remember the Igloo- rounding top / chimney- Head fake?) Keep these in mind as you look at the broad trend on the following charts of SPY.

 The detailed 3 minute 3C trend since April 2

 The 30 minute chart with price action since April 2 marked on the time axis. I'm sure I don't have to point out the divergences.

 And be much less detailed but much clearer underlying trend of the 60 min chart.

 This is not the head fake move/ false breakout from the triangles that I anticipated, the NASDAQ 100's break out is the model of what I anticipated. However we have what we have for the moment.

Breaking down the April trend, There is the rounding/ igloo top we are so used to seeing and to the right is the chimney or head fake move which has always been one of our best price based indications of a trend reversal.

It is difficult to believe, although no one can say for sure, that the above is all simply coincidental.