I hope everyone had a fantastic weekend!
As of tonight as Index futures open trade for the new week, many, actually all are reflecting the same negative tone from Friday, especially toward the close and just after.
ES / SPX E-mini Futures 1 min with tonight's trade / open seeing a continued strong-looking leading negative divegrence (the stronger form vs a relative divegrence such as seen at Friday's intraday highs during the cash market-red arrow in the middle of the chart).
TF /Russell 2000 futures also seeing a continued , strengthening 1 min leading negative divegrence as futures open tonight, picking up where 3C left off on Friday at the close of futures. Again, this is the stronger type of divegrence (leading) vs a relative negative or relative positive divergence both of which can be seen during regular cash hours Friday at the highs (red arrows) and right at the close (white arrow).
And NQ / NDX 100 futures with a continuing negative 3C trend that is leading tonight- Friday showed several weaker form relative negative divergences, negative around the release of the BLS's Non-Farm Payrolls (8:30 a.m.) and in the early afternoon with a relative positive at morning lows.
Of course this is just the open of futures trading, they are 1 min divergences and we have a long night ahead of us, but this is the opening indication for Index futures.
USD/JPY, after showing an "Inline" 3C trend (price/3C trend confirmation) as sops were run @>$121, there's a leading negative divegrence in the popular carry pair.
In addition, while the Yen is in line thus far tonight...
The $USDX is showing a fairly large relative negative divegrence from the range post the $USD's payrolls gains on Yen and Euro weakness . I find ranges that seem to be quiet and dull have the most active underlying trade. Of course a weakening $USDX would likely mean a lower USD/JPY, again it's still early, but those are the opening indications.
I did notice one other asset showing an interesting divergence, gold futures...
A relative positive over a pretty decent short term period.
I'll update futures again if anything really pops off the chart.
Is interest rates about to start going up?
-
Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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