A.M.. UPDATE

The overnight session for US Index futures drafted higher overnight and it looks like we'll get our bounce during the cash market today as it was set up yesterday and we could probably say the signs of it were setting up Tuesday.

It looks like the USD/JPY is primed just like yesterday morning to support and lead the market, especially after some $USD strength on the Initial Claims data at 8:30.

The Euro and Yen charts both look like they'll pullback and create the same kind of stronger base that we saw Index futures create yesterday, except this is a much larger base.

 USDX 1 min positive divergence going in to  Initial Claims and already leading USD/JPY higher.

 1 min USD/JPY which has been the engine Index Futures have followed to the upside and downside for weeks.

 However we already see some weakness in Index futures from the overnight session in 3C such as this 1 min ES chart.

1 min NQ

1 min TF also showing 3C weakness in to the overnight session so I suspect the bounce or higher prices are already being aggressively sold in to, the same game plan we have, institutional money just has much larger positions and has a lot more selling/short se,,ing to do.

 This is the 5 min $USDX still positive and able to lead USD/JPY higher, but these charts can change quickly.

5 min Yen futures still in the pullback range anticipated Tuesday, actually they could pullback further and set up a very strong base for a near term USD/JPY downturn taking the market with it.

And the same applies for the Euro (5 min) which has gotten a bit ahead of itself and looks to pullback and build a stronger base for a upside turn in EUR/USD on a longer basis also correlated with market downside.

 ES 5 min is showing 3C weakness already so this looks like the 5 min chart is moving and not far from the negative transition I want to see to add new positions.

 NQ 5 min is doing the same

 As well as a clearer picture in Russell 2000 futures 5  min

Meanwhile the 10 min Es chart which is by far the strongest probability has never gone positive and remains very negative here.

I suspect the bounce is over by Op-ex.

Lastly Crude still has a positive divergence after holding ground though the overnight session, I still suspect something is going on there.

5 min Crude Futures.

Everything looks as expected, which can set up some nice opportunities for us, the 3C action is already showing selling in to price strength and is not far off from the signals we need to start or add to additional positions.