I noticed those 60-minute divergences as well but figured that the bearish technicals on the daily chart would result in the 60-minute divergences on many of those leading QQQ holding to only play out for a small bounce, getting sold into sooner than the 60-minute charts were indication.

The one thing that baffles me is how quickly so many that were short or bearish have become completely dejected & seem to think the market has been in uber-bull mode recently. Since the election (i.e.- the market close on Tuesday, Nov 8th, before the results were in), the former leading index, the $NDX/QQQ has only gained about 1.6% & than includes today’s gain of 0.5%. Yes, the near-vertical rally in the small caps has been impressive but they are a very small part of the market with the much more important & significant large caps up from 1.6% (QQQ) to 3% (SPY) in the two weeks since the election & more importantly, both of those key large cap indices still have very powerful negative divergences in place with continued deterioration in the underlying internals.

We’re now on day two following Friday’s OpEx & if you look at any of those recent OpEx ramp charts that I’ve posted on the QQQ, although the ramp fades can take up to a week or so to kick in, it appears that on average, the OpEx ramp rally peaked about two trading sessions after OpEx. The potential monkey wrench thrown in right now is the fact this is a low-volume, abbreviated holiday trading week. Following the OpEx ramp in leading up to the Nov 20, 2015 OpEx last year, the OpEx ramp/rally didn’t peak out until 7 trading sessions after OpEx although from that post-OpEx ramp peak, the market experienced one of the biggest drops of the bull market with QQQ plunging 18% over the next 2.2 months from that post-OpEx peak.

Not happy about anything!