Market Update

Last night I said,

"If there's another very weak print and there's some evidence to suggest it, then I'd expect equity strength, treasury strength, gold to sell off, $USD strength, etc. However that's just conjecture until we see the print, we were massively surprised last month, perhaps it surprises in a surprising way."

And we were surprised equally this month, just not about this month, about the horrible last month's print , revised lower to 85k from 126k ?

WOW! In any case most assets are moving as predicted above, but even though we have been expecting a bounce and have positioned for it, I HAVE TO TELL YOU... I've given the market enough time to let indicators catch up and I'm not thrilled about the confirmation or lack of it.

Take QQQ for an example (and I don't say this to rain on anyone's gains, this may al change, I just want you to be able to keep those gains)...

 1 min chart hasn't made any effort to confirm the gap up...

It "looks" like the 5 min chart is confirming or in line, but this leading positive divergence was there yesterday, price just moved toward it, that's not confirmation.

And the 10 min leading positive chart hasn't moved today.

I guess for now, it's better than distribution signals, but I'll be watching close.

I'd normally say with a divergence like that we should have a couple of days of bounce in the tank.