Overnight Futures

Thus far overnight futures have made good on yesterday's positive divergence in the afternoon and fulfilled the highest probability giving us what looks to be a gap up this a.m. which makes sense being the average already had at least 1 positive divergence and that should be fulfilled during regular market hours.

 ES overnight with a second positive divergence and a move up in to the European open, right now 3C is in a strange spot as it is officially negative, but hasn't made a definitive turn down yet, it could keep moving up a bit more.

All the same is true of NASDAQ futures, although they look a bit more negative right now, they could still move up a bit more or rather 3C could.

This makes sense with the positives in the SPY, QQQ, DIA, etc.

It also makes it more difficult for those averages to add to their existing positive divergences from yesterday on a gap up as buying is almost always in to flat or falling prices, so we may very well see an opening gap faded at some point in the day.

Thus far futures risk on is broadly in line with moves in the EUR/USD overnight, if that be the case and the catalyst, then I suspect we see some weakness build in to the open.

While the ES/NQ 3C divergences aren't 100% clear yet, the EUR/USD which rallied in to the European open has a more defined negative divergence.

The pait is losing ground quick, a gap up opening would be the best outcome for short positions rather than a lower opening that allows for the average to build on their intraday timeframe positive divergences.