Unlike yesterday, I'm not so sure I want to call these divergences intraday reversals which some of you trades with good success yesterday for double digit gains.
I'm more looking at this right now the same way we saw the weakness in
Transports Even Uglier Than I Thought
Here's an example and this isn't one average, this is EVERY average and every Index future. The price movement I suspected as of Friday would need this kind of market movement to complete it, but I don't think I've seen such weakness starting with no positive divergences even intraday at the lows unlike yesterday at least (morning)...
SPY 1 min intraday which is the easiest chart to get confirmation from as it is the weakest. There was no positive divergence unlike yesterday at the a.m. lows and there's a clear negative divergence like transports in to the attempt to move higher.
The DIA shows the exact same thing.
You could almost interchange these divergences between the averages and they'd have the same effect, the same very weak look.
For instance, the IWM. You can see yesterday afternoon's negative divergence sending prices lower in to the close, but again unlike yesterday there's not even a hint of a small positive divergence such as we saw at that morning lows and the negative leading divergence is almost a spitting image of the DIA above (DOW).
The QQQ 1 min intraday with the same.
And, all of the Index Futures look the same as ES (1 min) SPX futures below...
Yesterday's afternoon negative can be seen to the far left then mostly in line overnight and absolutely NO confirmation of upside this afternoon.
Keep an eye on the TICK...
Should the channel be broken on the bottom, I suspect this VERY weak move will fall apart quickly, that I'd consider a day trade on.
Now you can see why I would enter no trades Friday with such weak charts other than those that have strong signals.
No comments:
Post a Comment