Quick Futures/Market Update

Yesterday we looked to be near the end of the reversal process, the transition from the Week Ahead's forecast of early price strength in the week, transitioning to weakness. Monday night in the Daily Wrap we were even looking for a second Doji Star to complete that reversal process as reversals are usually a process, not an event,  and we got that yesterday across the board.

Yesterday I also put out initial warning about the deteriorating nature of the charts toward the rest of the week's forecast in this quick update, Quick Index Futures Update and then followed up with the charts later in the day here, Index Futures Update

So far we look to be in pretty good shape, both intraday and from a reversal process perspective.

 Today's 1 min intraday ES chart which saw an earlier negative divergence on an upside attempt and is in line since.

The 5 min charts shown yesterday and more specifically at the end of last night's Daily Wrap, showed us a seriously, fast deteriorating situation in Index Futures.

This may not look like much of a reversal process because it doesn't show what was being reversed.

This 10 min ES chart shows the expected bounce off last Monday's lows when sentiment was at extreme fear, making it easy for Wall Street to take advantage of that fear and flip the lopsided boat, creating a new bullish sentiment that they sold record amounts of stock in to last week, now in yellow the reversal process looks a bit more clear and you can see, proportionate to the preceding trend.

So far intraday the rest of the majors look pretty good on the downside...

 R2K futures, there may be a small positive divergence intraday developing there, if so we can use it to our advantage.

The NASDAQ futures pumped on Icahn's APPL comments was not confirmed by 3C which continued lower and the NASDAQ finally broke and met up with 3C's downside.

I'm still watching VXX for new or add-to positions, I don't like chasing anything and I do demand that the charts show strong objective evidence for any trade idea, not just that the market is going down so VXX should go up, that's not a good reason.

So far things look good and the July 17th VXX $18 call position is still open as well as a UVXY (2x long VXX) long is still open as I expect both to be profitable.