Market Update

I've been using the quiet time to set price alerts for positions I want to put out , mostly on a bounce. I'll try to show you some of the core positions that I've held and believe in if we get time, but I suspect things may get a bit busier soon.

In the last Quick Market Update I wondered...

"If you could see what I see, you'd know why I'm loathe to add any more short term long exposure. However as we wait with baited breadth, considering if this morning's intraday lows must be hit first, I suspect perhaps not"

So far it looks like I was half right/half wrong on my guess...

The SPY and a couple other major averages hit this morning's intraday lows, the Russell 2000 did not, at least not yet. However the bigger picture is a larger lateral reversal process in place.

Furthermore...

NYSE intraday breadth is improving since after hitting extremes of more than -1250.

What I'm watching very specifically now (as it seems Yellen's comments this morning caused some trepidation that took some VIX selling to counter or trying to counter)... is the 1 min charts which have been in line for the averages, while positive for the Index futures.

 While the 5 min SPY has stayed positive and the more lateral reversal process has built out, typically the last thing we see before a reversal on any timeframe is a head fake whether a bull trap or a stop run bear trap.

Almost all day the timing 1 min charts have been nearly perfectly in line with price, so they are what I'm watching carefully since the break below the a.m. lows...

 And so far , as early on as it is, they seem to be responding (SPY 1 min).

IWM 1 min.

I'll want to see the same in VXX/UVXY/XIV, although like SPY they're 5 min negatives and positive for XIV have also held.

Keep an eye on TICK as well, it's your early warning.

Until then, I'm going to keep setting price alerts as positions that need to be in place for the next anticipated move are in place, so it's just a matter of management until the next pivot which recently has been a daily occurence.