Overnight Action and the Open

Is it possible? The loop is broken?

Well, whatever is going on, 3C has not been looking well on the regular charts, Indices or  ETFs of the indices which tend to give faster signals. I pointed this out last night particularly in ES and in my bigger article on why the market was acting the way it is or maybe was and reminded you that even if technical indicators weren't responsive during the Euro's closed loop, it didn't mean that the readings in something like 3c should be ignored.

So overnight, here's the EUR/USD FX/currency pair.

 The blue box is the start of this week's trade overnight and as I posted last night, the pair first hit resistance from last week, but the main resistance was in the form are large sell orders at $1.39 and you can see the rally in the EUR was turned back at that level (red). Buying came right in where there were open orders with the last rally coming off the $1.3830 level I mentioned last night (green). Stops were hit at $1.3815 (orange) and you can see that level looks like it will be tested as usual.


 3C 5 min ES Continuous 24 hour trade put in a negative divergence overnight as an extension of the longer 5 min relative  negative divergence that has been in place, now turning in to a leading negative divergence.

 This 30 min 3C EC chart lost a LOT of ground last night in a leading negative divergence. Just so you can see how much, the next chart shows the entire rally on a zoomed out 30 min scale.

 You can see the 30 min negative leading divergence is close to hitting levels associated with the start of the rally when prices were much lower.

Here's the overnight/opening trade ES 1 min chart with a negative divergence in to the rally and a slight positive divergence going in to opening trade, which has thus far caused some a little upside off the open, but the bigger picture is looking pretty bad as Euro worries are seemingly finally being discounted after weeks of nothing.

Here's my Trend Channel....

As you can see, it gave a stop signal on 10/13, you'll never catch the exact top with this channel, but you will usually catch 80% of the trend. Often after the first stop out, which I usually take, there's some volatility, but rarely is it worth trying to catch. The Channel is starting to turn sideways and approaching another breach. ADX below has signaled 2 changes of trend by turning down from above 40, 1 at the start of the rally, and the other around the same time the Trend Channel stopped out.