Overnight ES Volatility

I recently mentioned how volatile the market has been lately, which is simply a sign of the market about to go off a cliff unless some major intervention comes quickly. It is akin to an emotional basket case, dropping between episodes of fear and rising on episodes of hope, like the stages of grief I recently compared the market to.

Here's ES overnight, which started on a bullish note.

 To the left is the 4 pm close and a positive divergence, ES moved higher on the positive 3C divergence until Europe opened when we saw 3C negative divergences in red.

Skipping forward to early a.m. and the US open, the white line is 3 am EDT or the European open, you can see the negative divergences, the market trying to hold the gains and slipping badly right before the open.


Currently the 9:45 and 10:30 rally peaks were both negatively divergence on 3C, ES has dropped and is finally moving in line with 3C, which may give it a chance to try to put together some intraday bounce/rally.