Index Futures Update

As mentioned earlier in Quick Index Futures Update, I make it a daily ritual to go through all of the major futures that effect the market or we have some other interest in. 3C is not meant or wasn't designed as a "What's going on" indicator, it's strength is telling us when something very obvious is diverging from price, meaning smart money is doing something very different than what price action would suggest, those are where we find out biggest opportunities and to find the best of them, we have to be patient. If we weren't patient, we'd be sitting through or trying to trade through what I think is best described as a Murder-Hole, the traps set up to ambush would-be enemies.

In my opinion, that's exactly what this is.

 This 60 min SPX chart is DEATH to most traders, unless you have an edge to know where the pivots are, where the opportunities are and when it's time to wait and be patient for the next one.

The same chart with some additional information shows 2 previous calls we have made and a third we are in the middle of making now which I suspect will be one of the bigger or more important of the 3.

The same SPX chart with some projections as to what the market is up to and where to expect opportunities like the yellow head fake highs in May to the left or the overwhelming sentiment of last Monday setting up the market for a correction that flips sentiment as documented as it happened from last Thursday's Daily Wrap and of course currently. Those are the 3 best areas to take new positions, at least the first two have been proven as such and third was projected to be as far back as last Monday. Anywhere other than those area, I think you are wasting your time for the most part as far as the broad market is concerned.

As I said earlier, the Index futures move a bit faster and they are moving.

 Es intraday 1 min has barely moved at all, there's no real edge here or is there? Remember I expected a candle that looked similar to yesterday's to show up in the same area today. ES hasn't put in any intraday divergences of any meaning, thus making it possible for us to get that candle.

The run from last Monday, documented as it happened in last Thursday's Daily Wrap linked above and the flat loss of momentum since. If the SPX/SPY/ES were to make much noise intraday, this candle likely wouldn't have been possible. I'd like to see volume pick up before the close...

 TF/R2K intraday futures have moved a little, but look what they are moving in to.

 The 3 min Dow Futures chart shows the flat range that makes the two daily stars or reversal candles and the 3C position here tells us that's most probably what we are looking at with a leading divergence to the downside.

The 5 min NASDAQ futures show the run from last Monday's overwhelming fear which was too many people on one side of the boat, as we said last Monday, "Wall St. is going to flip it, it's easy money".

However at the end of the run where momentum starts to die, the divergence on the chart should be clear and it is as we would expect.

This is the 7 min NASDAQ futures showing the same Monday lows and fear creating support at the SPX 150-day for the second tag, making traders feel comfortable with a move up as support below is better defined, sentiment is flipped, but the divergence is clear as to what's been happening behind the sciences or underlying trade.

 The 15 min ES chart showing the same trend from that same Monday.

As well as the Es 30 min chart.

Remember when the 5-7 min chart's divergence was all I needed for a short term trade? Here I'm looking for the bigger pivot, not to be in the middle of it or at the end, but at it.

And Dow futures and their 60 min trend, just follow it, you'll see this is more a corrective move than anything and there's already a strong negative trend in place.