Transports are holding up better then expected as well.

 DJ-20 1 min

  DJ-20 5 min

  DJ-20 10 min

  DJ-20 30 min

 DJ-20 60 min

Interesting Financials Chart

Take a look at FAS-a leveraged long Financial ETF, then look at the Financials this a.m. on sector rotation.

 FAS 1 minute looking very good on the 1 min 3C.

Note financials at the bottom.

15 min charts holding up well

 DIA 15 mn chart holding up well. if the 15 min chart starts moving up on a recovery as I drew in with the yellow arrow, we'll have a very powerful positive divergence

 IWM 15 min

 QQQ 5 min

 QQQ 15 min, big volume dump on a break of Friday's lows.

Same with the SPY.

SPY Update

SPY 1 min looking a lot better here.

My guess is that retail saw futures this a.m., placed limit or market orders and left for work, like I said earlier before the market opened, the game still has to be played. We'll let the market continue to guide us though.

GLD Update

GLD seems to be fading...

 GLD 1 min

 GLD 2 min

GLD 5 min

SPY update

 1 min 3C is "starting" to lead.

 the 5 min I would normally have expected to go negative, still positive.

And the TICK hart is showing improvement.

July ISM continues the Downtrend

July ISM printed at 10 a.m. at 50.9 on consensus of 54.9 (previous 55.3), as We've maintained, this data series is moving toward sub- 50 or contraction.

I don't think it had anything to do with the early a.m. action as that was right off the bell, it may have contributed, but my guess is that the traders that place limit orders and go to work, placed buys seeing the futures and were just taken to the cleaners. This is why I usually don't pay too much attention to trade before 10:30-11 am.

SPY Update

Strange pullback,

The 5 min chart remains positive.


The TICK chart went very negative off the open, it is now starting to move in an upward sloping channel above the positive line.

Early Market Update

 non-confrmation on the 1 min is simply indicative of the pullback we are seeing.

 5 min is not in line, but moving toward it.

The 15 min chart is still the most important in a leading positive divergence, like I said, Wall Street will still play the game.

The Power of the Cycle

You've probably heard me say quite often, "Once Wall Street puts a cycle in to effect, there's not much that will stop it, not news, economic reports, nothing; all that will be discounted on the next reverse cycle."

As for this morning's reports, they come in the way of the continued PMI reports falling off a cliff. We have China's PMI at 50.7 on a continuing downtrend and inching closer to contraction, the E.U's PMI is at 50.4 a mere .4% away from contraction.

Today the U.S. will release it's ISM, it will be horrible, keep watching this week though as the market most likely shrugs off bad economic report after another until Wall Street has finished the cycle that has probably cost them close to a $200 billion to put together.

We've seen it many, many times.

One final word of caution, don't get complacent this week, Wall Street still has to play the game.