Market Update

I just went through a lot of charts, at least a couple hundred in futures, in the averages, the leveraged ETFs and inverse ETFs, some of the watch list assets, you get the point (there's 100 charts alone in my daily Futures check up).

In any case, there's something very interesting about this area, there's also something that has me sitting on my hands for the moment. If I were to look at the whole picture beyond the objective evidence of the charts and in to some of our concepts such as a head fake move before a reversal and the size of a counter trend move (taking in to consideration how bad off market breadth truly is) in general as a matter of its purpose, I'm leaning toward taking some action, but something keeps telling me, "All is not aligned yet, be patient".

For example the "gas in the tank charts" are not definitively destroyed, which I don't find surprising given today's price action as we generally need higher prices to see smart money willing to sell in to them, otherwise from a tactical point of view, if they try to move positions as large as even a short term trading position (much less a long term trend position they are closing or a new one they are opening) they run the very real risk of creating a supply/demand imbalance that works against them and exposes them to predatory HFT's such as the Iceberg hunters (HFT's that look for signs of larger orders being broken up in to smaller pieces so they know there's a large order trying to be executed and they front run it causing a horrible fill for the seller/buyer of the larger position or Iceberg (as only the tip is visible while the bulk of the mass is underwater). A Chimney/head fake as mentioned earlier on the UVXY/VXX chart, would go a long way toward settling some of these charts, but a relatively flat, dead market offers little opportunity to the big guys moving big positions which is probably why today feels so dead.

I need to take a look at Leading Indicators again today before the close and see how much (if any) deterioration has taken place and where.

I did find some interesting signals going through the averages and their leveraged ETFs, both leveraged and inverse leveraged as they tend to offer good confirmation and some really have me anxious to make some moves, while the overall picture tells me, be patient, "It's a process that unfolds".

For example...

 Today's daily SPY candlestick chart looks like a Tweezer top. Earlier it looked like a nice Harami, you just have to see how it closes, but volume is not where I'd expect it to be for a strong reversal candle that's well timed.

I showed the Igloo/Chimney price pattern in UVXY earlier and it has been bugging me as this rounding area is just too symmetrical, it's a perfect set-up for a Igloo/Chimney and that's just on this chart's price pattern not even considering that this concept in one form or another holds true about 80% of the time and just as I'm putting all of this together...

My AAPL alert from earlier today goes off as it breaks intraday resistance, the support the market would need to get that Igloo in. Or perhaps this is op-ex related as the pin tends to be close to Thursday's close (except last week).

In any case, I have some more charts to go through, but unless you took the AAPL very speculative long, I think waiting for there to be no question, no nagging issue or concept, being patient for another day or so won't hurt, in fact I think it's one of the most important things to long term success.

I'll let you know what else I find.