Overnight/Premarket

I was wrong about overnight sentiment which I thought although there was some slippage, should largely hold up.

Overnight the Japanese Tankan sentiment report was full of exporters worrying over Yen strength, which is a topic I touched on last week as the Yen carry trade is being closed out, the Yen appreciates and the funding for stock purchases disappears.

There was also weak unemployment Eurozone numbers in which it rose. Also French PMI dropped nearly a point from 47.6 to 46.7, the effect on ES-S&P Futures?

To the left is the opening high from last night and pretty much all bad news from there, 3C is showing a positive divergence, lets not forget the strange EU market close effect last week, US stocks weak in the am on a strong dollar and as the EU markets close, the dollar looses strength and they have rallied in to the afternoon, not saying that is what will happen, it was however a notable trend last week.

As of now the markets look to open close to flat so a bounce is still not out of the question, neither is deterioration not only in the EU, the US, but the world's 3rd largest economy, Japan and I doubt anyone really believes the Chinese PMI print.