Still Strange...

Yesterday I noticed strange behavior. Actually well before yesterday. Below you'll see 3C charts of the major averages with leading 10 min positive divergences that appeared virtually overnight out of thin air, not the "normal" process of a divergence strengthening as more and more shares are accumulated, the process of migration in which we first see a divergence start on 1 min charts and as it grows stronger moves to 2 min, then 3 min , 5 min so on and so forth. However by the time a 10 min chart is leading positive, it usually has quite a sturdy, wide base as this is a process. These 10 min positives are like towers that popped up out of no where, almost as if this morning's knee jerk reaction to the NFP revision of March payrolls was leaked information.

Yesterday I posted some of this strange behavior in Market Update: DIVERGENCE BETWEEN THE AVERAGES AND INDEX FUTURES.

In any case,we have what we have and thus far we have positions at gains on the move so that's what we have to work with, I just want to protect them.

 Looking around this morning, the TICK Index is INCREDIBLE, I've NEVER seen anything lie it to my recollection...

 The TICK Index hit an extreme on the open that I don't think I've ever seen before, +2320. $1500 is a strong/extreme reading, I believe 1850 or so is the highest I remember seeing, I don't think I've ever seen +2000.

However look at TICK since, in a tight range of +750 to -250, that's also an EXTREMELY dull range, something more akin to a Max-Pain options expiration pin, although I'm not saying that's what it is, it's just reminiscent of that.

One thing I noticed is the $USDX did NOT rally, this is kind of the centerpiece of the market which I showed in last night's Daily Wrap.

 In fact this 5 min chart looks like near term $USDX may even pullback a bit.

However I have little doubt it's going to rally....

 This is the much stronger and solid 30 min leading positive $USDX divergence. This almost makes me wonder if perhaps we get a gap fill and another move on $USDX strength?

However, while divergences like these stand, I doubt I'll be closing any positions opened for this move unless I have very good reason...

SPY 10 min leading positive, but again notice how quickly it formed, off a "V" bottom!

 IWM 10 min leading positive, this at least is a bit more solid and why I have favored the IWM as underlying trade looked better.

And the QQQ with the bare minimum upside target based on where the 3C divergence first showed up on the chart at the green trendily.

Again, this is an odd divergence to form so quickly on so little base.

VXX 10 min is confirming leading negative, but don't forget this has teeth that will be brought to bear (no pun intended) soon...

The large and leading positive VXX 15 min chart. Notice the difference between the construction of this divergence with a sturdy base, a strong process building this divergence vs the 10 min chart just above this. This is a monster of a divergence, the other will still work as it has, but it has no where near the strength or staying power that this one does.

 High Yield corporate credit is often used as a lever to help move the market, although I'm not sure if it was needed today. It's also an institutional risk asset and they are wasting no time distributing in to the gap on this intraday 1 min chart.

Here's the 60 min trend in HYG of pure distribution. You want to know what smart money is doing with risk assets? Look above.

In any case, from my perspective it's a strange lot of charts, that shouldn't change anything for you/us until we see what I suspect will be very fast and strange looking distribution signals which is why I didn't take on any more long risk as noted the past 2 days.

Just some thoughts so you'll know where we are at and I don't need to explain a lot when things change quickly. I see no reason we shouldn't have the same fore-warning we had for this move so I'm not saying that to scare anyone.