Divergence food for thought

Not sure how to interpret this chart (lack of belief in China growth?) but the divergence between $QQQ and the metal miners $XME hasn’t been this significant since 2008.    Our time-frame is too short to trade off such a chart but interesting nevertheless.   Even if you take out $AAPL out of equation the divergence is very significant as a $SPY/$XME chart shows  similar divergence.   Any thoughts?

Refiners coming into important zones

Refiners had a hard reversal on Friday and look like they want to test their respective 20SMA averages on daily.   Let’s take a look at our three favorites,  $HFC $WNR $TSO and their respective initial support zones.
WNR 17.6 range is the first initial support.   Note that this would be the first test of the 20sma this year.

TSO first support near 26.75

And HFC first support near 32.8

If they aren’t clearly trending down (following 20ema on 5 min intraday chart) we’ll try all three for support long buys, either a) waiting for reversal before entry with stop on low or b) bidding the aforementioned spots with around 0.5% stop.

To put it simply  bullish would be a bounce on the zones given in this post, and bearish would be no reaction on these levels as buyers shy away from initial support.

Refiners can sometimes act as decent market tells and with crude approaching $110 and $SPY at resistance we’re on the look-out for the possibility of at least a pause in the music.   Keep your eye on that empty chair.