Overnight and in to the open

Overnight a GERMAN ECB member backed the controversial bond buying program that was mentioned over the weekend and then denied by everyone from Germany to the ECB itself yesterday, this sent overnight risk up on the comments.

Spain also had a fairly successful auction, selling more than they had planned and with lower yields, all in the 12-18 month range, the bid to covers of the auction were mixed though.

And the UK posted a very unexpected budget deficit, apparently due to a shortfall in corporate tax receipts.

Greece is found by the Troika once again to have another funding shortfall of up to $14 bn Euros, this ahead of scheduled talks with Junker and Merkel both this week in which Greece will ask for 2 more years to make the cuts agreed on. This shortfall is 20% more than stipulated in the agreed upon bailout terms (latest) and could endanger Greece receiving any bailout funds, especially after the German Finance Minister said this weekend that they can't keep throwing money in to a bottomless pit. Also Germany's Foreign Minister says there can be no substantial softening of the agreement in place.

In the US the only Tier 1 data was Goldman's Retail Sales...

Released On 8/21/2012 7:45:00 AM For wk8/18, 2012

Prior Actual Store Sales - W/W change -0.3 % -1.5 % Store Sales - Y/Y 3.6 % 3.1 % As you can see, there was a fairly sharp decline on the week on week sales.

Opening indications will be up next, but so far we have had a familiar theme in ES that has only been seen at the last 3 reversals with the Risk Asset layout divergent as it is now, that theme, the persistent ES leading negative divergence... This is a divergence rarely seen, so far this year it has happened 3 times, it is 3 for 3 in calling major reversals.

 Yesterday's close and after hours action was deeply leading negative, here it continues in to the European open,

And here it continues in to the North American open