I should have mentioned in the last post the disconnect I showed you yesterday between European stock markets and not only credit, but more importantly soveriegn yields, the two are going in opposite directions. If I had to get inside information from the smartest people out there, they'd be in credit and bonds and they were not enthusiastic like the market averages were, yo may recall the chart from yesterday.
It seems some of that may have carried overnight in ES.
This is ES (SP mini Futures) overnight with the green arrow representing the 3 a.m. EDT European open, note that 3C is almost in perfect unison with ES, that's price/trend confirmation.
From last night to the present with the 9:30 NY open with the dark blue background, note a small pre-market positive divergence in ES sending it higher in to the open, the green arrows represent 3C in line with price or not contradicting it, I call it confirmation. Since then however, 3C is still trading like ES, but at a lower level or what we call leading negative which is a negative divergence. There appears to be no sign whatsoever of any bullish underlying trade except that which occurred right before the NY 9:30 open.
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