Intraday Update

Unless you want to take some gains off the table such as last week's VXX calls, which could have been done anytime today at a double digit gain, I still think patience here is the best option for the moment.

 ES 1 min in line for the most part, some minor intraday divergences however the bounce off intraday lows doesn't look all that interesting right now.

 The 5 min+ VXXX charts do look quite interesting, although I believe to take advantage of the signals on a chart like this, it calls for patience.

 The intraday 1 min VX which was not confirming the gap up earlier, which is similar confirmation to the SPY, QQ, IWM small positiver intraday bounce divergences, is starting to look like it wants to move toward confirmation now that we've had a bit of a bounce with some interesting internals...

The intraday NYSE TICK chart hit an upside extreme of > +1500, then promptly broke down, very quickly in fact.

The daily SPX did piece the 150-day (pink) moving average earlier, but here's where the day should get more interesting...

As the SPY intraday chart and the TICK above and perhaps VXX intraday above as well appear to be suggesting, a move back toward the intraday lows in the major averages would be very interesting and tell us quite a bit. If there were to be a stronger positive (intraday) divergence, then perhaps I'd take some VXX gains and look for the next entry, however if we don't see anything like that, the market may just be getting ready to slice through local support (100 / 150-day ma's).

Thus, patience is still the best course of action for intraday/short term decisions, let the market get to an area where we should have some excellent information.

As to the longer term or bigger picture beyond what is being dealt with above, I don't think I'd have too much trouble sitting on a July 17th VXX call, I think it would be fine.

I believe we'll find out soon enough as to whether the 150-day will provide the same short term corrective support as the 100-day last week, if not that means those open gaps above will hold, the market's character will have another significant change and the probabilities of the market holding together in the area for much longer diminish rapidly.