In my opening Indications post this morning I showed you how I expected early weakness, perhaps gap filling, etc using the DIA as an example, as of now the DIA is the only average of the majors that hasn't filled its opening gap as of yet, but is close.
That same logic or theory can be seen in FX, both the Euro and $USD.
First the pair...
EUR/USD 5 min-as far as opening trade this morning, it feels very ugly, especially in the NASDAQ, however...
Take a step back and the defense of $1.29 and the move and pullback in the pair doesn't look quite as nasty as it feels this morning.
As for the Euro (FXE) and $USD (UUP), the 1 min intraday charts are interesting in that they agree with a pullback in the Euro, but the divergence is only intraday, it is not strong enough to even migrate to the 2 min chart.
Euro/FXE 1 min negative on the open almost looks like a gap fill should occur here.
The 1 min intraday $USD/UUP chart is exactly the opposite as it should and looks like it should or wants to fill the downside gap from this morning's open, but...
move to the next timeframe, 2 min (where we'd see migration of the negative divergence if it were strong enough from the 1 min chart) and we see NO migration of the divergence, leaving this as an intraday signal only so far.
The same is true of the $USD 2 min chart, no signs of migration of the 1 min positive divergence, this isn't a big jump to make from 1 to 2 min, but it is not there, which suggests the 1 min signal is enough to move intraday early on as opening indications suggested, but not much more than that.
As for market average divergences that are taking shape right now, the QQQ 1 min and 2 min are going positive and seeing migration of the positive divergence; IWM is inline, SPY is in line; DIA 1 min is starting to lead positive as it just filled the gap and in futures, NASDAQ 1 min futures are seeing a strong positive divergence and ES is also seeing a positive.
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