Market Update

It looks like USD/JPY is closer than ever since this morning's observations, to giving up the ghost. The $U?SDX has a negative divergence and looks as if it could be at the end of its usefulness and the Yen is still positive.

There are several market averages also putting in negative divergences along with Index futures. The most important "gas in the tank" charts haven't moved much today, but as you'll see almost all intraday trade has been nearly perfectly in line.

 USD/JPY still rather flat , but seeing volatility pinch. Generally speaking this happens just before a highly directional move, for instance a break to the downside, a Crazy Ivan break to the upside followed by a downside break, etc.

The $USD which had to be run up pretty well this morning just to keep the USD/JPY in place looks like it's starting to fail and the Yen...

Is still maintaining a growing positive divergence, the first divergences in these two currencies since last week's positives USD/JPY that led to this week's bounce.

This is the SPY 1 min intraday going negative here at the gap fill. Note there was NO positive divergence lifting SPY today, it was all in line.

SPY 2 min shows the same with a bit less detail, but again in line, no positive off the a.m. lows.

And SPY 3 min is showing the exact same.

The 1 min IWM is looking pretty bad here. It too saw no positive divergence off a.m. lows, just an in line status which would make sense with external levers being used to support the market here. I don't read too much in to these things on intraday charts, but if the pros aren't willing to throw a little intraday support behind an asset to get a gap fill, that may be telling about their perspective.

 IWM 2 min

The QQQ 1 min is the only one that has a small positive divergence at the a.m. lows and the rest of the day it has been in line and remains in line.

 This is the 2 min UVXY (2x VXX) and I've noticed a very familiar price pattern with this divergence.

Flipped upside down, it's our old transitional price pattern, the Igloo with a Chimney or a head fake. I don't have any specific knowledge of charts implying a head fake, but I always talk about the practicality of our concepts, how they work with just about any asset and in any timeframe. It would be hypocritical if I didn't point out this price pattern that tends to be one of the best price-based timing indications as these head fake moves or the "Chimney" in this case typically happens right before a reversal in price, again in this case to the upside.

I'm going to go through Futures and the watch list so I may be a bit quirt for a few minutes as I go through a couple hundred charts.