The Bounce? More importantly the game...

In last night's post I presented you with a number of charts that showed positive divergences that went out to the 15 min chart in a number of stocks, market averages, and other risk on and off (Safe haven trades like Treasuries) that suggested not only were we finally getting the best, the clearest signal that we have had since the May 1 decline, they also suggested this bounce (which I have expected to occur and be probably the last bounce) that has thus far started with a gap up this morning.

I'm trying to put together a bigger post, it is taking some time, but the intent of the post is to show why there's no real catalyst in the market's for a bounce.

The point being, it takes the 15 min charts some time to come up with such clear, strong signals, it didn't happen in a day, it certainly didn't happen overnight. I think, while this post I am working on will not be useful in the near term market action, will reveal to you the true nature of the stock market and just how manipulated it is. I am taking the time to put this together because I think it is critical for you to understand this concept so you may apply it to your methodology. You must understand that what you see in price is not what the true picture actually is and what your favorite indicators are telling you are likely useless or coincidental. You have to learn to follow the footsteps of elephants and understand what they are capable of and the true nature of the market is you ever truly want to beat it.

I'm not taking any victory laps for the post last night and the open this morning, it is way to early to entertain thoughts like, "We were right!", but we are thus far on the right track. It is important you understand the reasons.

I'll be updating while I try to get this larger post together, but for now, lets just look at the overnight market price action alone in ES (The S&P E-mini Futures).

 This was a positive divergence in ES after the close last night.

 This is a negative divergence after ES had gained that ocourred at the European open, you will understand why more in the next post.

 This is ES overnight, and the reason we gapped up this morning.

 Note that CONTEXT conditions improved supporting ES, but largely overnight when they would be least expected to improve.

And here's out gap up.

I'll update the opening indications and continue on with the other post.