Futures Update

As futures lead the market and are a larger market where most traders are on the institutional side, I've found they have helped our analysis tremendously since we started covering them, although they need to be viewed in a different way than the stock/ETF/market averages as futures trade 24 hours.

So we'll look at futures and then look at the averages and see where we are on the continued  bounce or anything else that may have developed.

First the S&P e-mini futures and then the NASDAQ mini futures in the 1, 5 and 15 minute timeframes for each.

 ES 1 min as of the 9:30 NY open, a positive divergence at the lows in the mid morning trade sending ES higher only to see a negative/leading negative divergence in afternoon trade just before 2 p.m. which I am not passing judgement on as I had hoped to see prices stay subdued while positive divergences built, if we were going to carry on with the bounce.

 The ES 5 min chart negative yesterday as we well know and nothing better than in line with price today, no positive or negative divergences here.

 ES 15 min with confirmation of the move up at the green arrow, confirmation ended as a negative divergence set in yesterday taking the market lower, an excellent signal and the 15 min chart is lagging price today. This is less positive than I had hoped to see if we were to continue our bounce.

NASDAQ futures.

 1 min as of the 9:30 NY open were mostly in line with price until the negative divergence just before  2 pm and on the pullback intraday the chart is inline.

 NQ 5 min with a very nice leading positive divergence Wednesday which fit all our short term analysis from 3C to dominant price/volume relationships for an oversold corrective bounce; that move was sold in to yesterday at the red arrow/negative divergence and thus far 3C is in negative territory vs price, no positive divergence here, certainly nothing like Wednesday.

NQ 15 min going positive Wednesday right on the open and throughout much of the day, then confirmation at the green arrow and as seen market wide yesterday, a negative divergence, the relative positioning tight now appears to be slightly positive, but it's actually closer to in line.

The bottom line for today is it appears there has been very little activity in institutional trade which is not unusual for a Friday and holiday week (Jewish holidays).

Now to take a look at the averages as they will give signals that will typically be picked up the next trading day.