A.M. Update

I hope everyone had a pleasant 3-day weekend.

Getting right in to the market, it's pretty much, "Pick up where we left off".

From Fridy's closing, That's a Wrap!

"The concept of 3C picking up where it left off, even over 3-day weekends will be tested on Tuesday as we did have positive divergences late in to the day and close, right along the lines of the bounce I expected to start today after the 2 p.m. op-ex pin is pulled.

the short term forecast is, market up in to underlying weakness which we will confirm and use to our advantage to enter new positions or add to positions at the right time which is when we have confirmation on the charts."

Thus far it looks like that's what we'll be seeing this morning.

There is some very short term intraday 1 min weakness in the futures, but I wouldn't expect this to change anything above for the moment, especially not with the State of the Union tonight and the ECB on Thursday along with the BOJ rate decision tomorrow.

1 min  ES chart is the most extreme, NQ and TF are closer to in line. Maybe a little early , small gap filling, but I still expect we bounce as we have been expecting as there's a base big enough right now to sustain the bounce finally.

The real question os the quality of the bounce and how long it can sustain and those are answers we can only start to understand once we see the underlying reaction in to higher prices, bounce prices.

Of course the ECB will likely be a huge knee jerk event, one that is priced in, but there's plenty of room for surprises.

As for US surprises, would it surprise you that the F_E_D's Bullard who we just talked about last week as the biggest flop-flopper of all whenever the market needs him to be , was out doing another 180 degree about face this morning with comments that he was "Eager for the F_E_D to raise rates", combined with the F_E_D's unofficial mouthpiece, Hilsenrath from the WSJ who says the F_E_D will not delay rate hikes despite record low bond yields, just as I've suspected for some time, they need to get out of this policy mess for one reason or another, they've been telegraphing it for almost 2 years, something the SNB might need to learn about as more brokers and pain are felt from their surprise policy action.

I'm not going to read too much in to the market right now beyond what we already expected last week for this week, lets see how it moves in real time and what secrets it divulges.