Currency, overnight ES and China

 In EDT time zone, ES saw a positive divergence around 8 p.m. and a negative divergence around 11 pm. Since capturing this screen shot ES has slipped a little more and for the time being the trend is in line suggesting that it continue to move down until the next divergence.

 This move is almost perfectly correlated with the start of a move higher in the EUR/USD above and the AUD/USD (carry trade) below.

AUD/USD

Here's a closer look at both...

 EUR/USD

AUD/USD

It appears concerns over China during the Asian session caused the slip in the currencies and thereby
ES futures, the AUD/USD would be expected to react more pronounced being Australia's trade with China and we see that in the pair.

ES continues to slip from $1402.50 at the start of writing this to currently $1401.75

Of course Europe opens in 45 mins so a lot can still happen overnight, but I thought it would be interesting to point out the effect the currency pairs have on the market futures.