Market Update

The charts below are a big part of the reason I thought we had a little more time in the early part of the week or more specifically, the earlier part of today, most specifically the IWM charts.

Just about everything is inline, it was the IWM that had the one signal that was the cause of that comment in the Week Ahead.

Intraday breadth is scattered right now as well.

 IWM 1 min positive since Friday afternoon

IWM 2 min larger trend since late last week with the late Friday intraday positive.

Intraday 1 min the Q's are in line right now. However several members sent me this chart over the weekend, I had seen it, but I don't usually use other people's analysis, but since I felt it was material, I see no reason to withhold it because it's not my own.

This is with the commentary to give some perspective.

"Google adds as much in one day as the market cap of 415 S&P 500 companies, we have one question... should breadth look like this when the index is hitting new highs?

"

 Essentially it means the NASDAQ advance last week, especially late last week was on fewer and fewer stocks, but we saw that more broadly in last week's breadth charts that failed to make a higher high and instead made a lower low at the highs of last week and this bounce.

In any case, the 2 min QQQ chart doesn't look so strong compared to the 1 min intraday this morning.

 QQQ 2 min

The 1 min SPY is about in line and you can see price is moving for the most part with breadth intraday.

Our custom Breadth trend indicator for the NYSE TICK.

A longer version for this bounce.

I didn't draw any arrows, I think the histogram may be easier to see without them, but notice the wilder volatility today, indicative of the end of the process while through out it was steady, constant deterioration.

I think the week ahead post was pretty close or will end up being so.

The Daily charts are looking good as well for a downside pivot/reversal. Note volume and the candlestick loss of momentum along with a lot of gaps.

 The DIA/Dow with some of the worst candlestick daily trends and volume which is pretty darn good confirmation of the NASDAQ chart above.

 The SPY with 3 small bodied candles after a gap with ugly volume.Today's candle is a bearish indecision or loss of momentum candle typically associated with a reversal signal, I prefer to see large volume on these, but a market falls of its own weight so it;s not a prerequisite, although I personally find those candles much more reliable (with increased volume over the previous day on a reversal candle).

 The NASDAQ 100 with the clear resistance range/head fake set up at "A" and a smaller body candle today on happy price action.

And the IWM looking the worst with nearly a week of bearish candles and declining volume.

A better representation of the IWM's price action over the last 2 weeks may be a 5-day chart.

The first candle is a bullish support/bounce candle, the second (each candle is a weekly candle) is a small bodied , bearish reversal candle.

there are still some 3-5 min Index futures charts I'd like to see move a bit more, but so far this is about what I was expecting on Friday when posting The Week Ahead.

More to follow...