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I ruminated this morning (Oz time) about how the pullback from the double-divergence (late in the afternoon, US time) was pretty shallow.
Well, look at it now...
Speaking of looking at it now, you can see a divergence forming on the 15-minute Dow chart. the index has made a new, lower low - and yet the CCI has turned up.
There will always be a time when a particualr indicator doesn't work, and unless I miss my guess this will be one of them. Regardless of that, in this game you step up and take the devil on, every time.
So with repurchase a measly $2 bill, the CPI (headline) above expectations (excluding food and energy it was in-line with consensus)... hooo-eeee. Draw a deep breath and buy the S&P - that's what the methodology says, so that's what happens.
We also jsut got a reading on TICK of -800 - the first I've seen for some time.
Let's see where a long takes us... the S&P is currently at 1226.6... let's assume that 1225 will hold in the futures...
