As the broad market kept testing the pivot low during the morning trading, equity traders were continuously selling more Discretionary Stocks than Staple Stocks seeking safety, which is a negative for the market.
On the 5-Minute chart, each time the market tested the 78-Period Pivot and VWAP, the $TICK showed weakening upward momentum. The Standard Deviation line tried to act as support but failed. The only true support came as the market hit the 10-Day Average Distance From the 0930 ET Open Line. On the Test of that low, upward momentum started to show after the Energy Market close at 1430 ET.
On the 1 minute chart, we can see that as upward momentum decreases, the market quickly breaks the low pivots as can be seen just after the European market close at 1230 ET. After each break, the pivot lows become resistances. The same quick break to the upside can be seen just as the bond market closed at 1500 ET, as the market was showing increasing momentum to the upside.
The end of March is statistically weak. Let's see if the market test the VWAP line near 740 or the month's open at 729.50.
Charles
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