Last night I saw some divergence forming on the longer intraday time frames, and took a speculative short at 4140 for a 10% fill. Nothing major, but given the negative divergence it was worth a shot. What didn't convince me completely was the intermediate rally we got between the two tops.
We found resistance in the 4160s area, and broke above on a few occurences. However, the 4160s also provided resistance on a previous occasion. Between the end of January and mid-February, the 4160s area had provided support a few times. I am watching closely if we break below the 4050s to 4060s, or if we remain range bound. The 4050s to 4060s area had also provided support back in January and early February.
Momentum is negative on intraday charts as I am writing this, but let's see what the US markets bring to us this afternoon.
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