Early Futures

With Friday's apparent op-ex pin over, we should now start seeing the upside volatility shakeout of the shorts that was building last week.

Here are the FX markets and key S&P and NASDAQ futures market as of the 9:30 N.Y. open

 Above is this week's open in the EUR/USD at the green arrow, I watched this for several hours last night vs the AUD/USD. The Euro dropped pretty hard on the open and initially took SPX futures with it, but as it stayed hovering around the lows, I had a good feeling the futures would recover because of the following charts.

 The more leading indications of the AUD/USD did not hover near the lows for nearly as long nor did the futures, I went to bed with a good feeling we'd see the futures recover overnight as they did.


 1 min ES-SPX Futures shows the initial dump with the Euro to the far left, but there was a positive divergence there and the futures recovered, the green arrow is the European open and by the US open the SPX futures were in line with price which is better than the negative divergence creating a consolidation earlier in the morning.

 The 5 min chart of ES is more important, just as the 15 and 30 min charts, even though we can't see as much history on 1 chart, there's a strong positive divergence through most of last week and this is a strong indication the market is ready to make that move higher, this is why I said on Friday if you have longs you are interested in, now is the time to start wrapping up positioning.

 NASDAQ 1 min futures since the open yesterday seeing the initial dump with the Euro, but recovering much quicker than the Euro, these are showing a positive divergence in to the open.

Again the 5 min chart doesn't show the full wee from last week, but there's a strong positive divergence from last week, this should play out this week in the volatility bounce.


More opening indications coming...