Draghi Rains on the Parade

This post is a bit later than I wanted, but I had some browser issues. Any way, here are the overnight ES futures and EUR/USD...

 The white arrow is around when the election was called for Obama, the red arrow is when Fox news had some question and the Romney campaign as to whether Ohio was called too early and the green arrow is the resolution and Obama's victory. The yellow arrow is the European open.

 Here's the second half of the overnight ES session with a negative divergence and things going downhill badly around 5 a.m.

What happened? ECB Central Bank President Mario Draghi came out with the "C" word, "CONTAGION" and confirmed what we all knew would eventually happen, namely the debt crisis is starting to hurt the GREMAN economy and the crisis is causing German rates to be very low, lower than they would otherwise be. This sent the Euro plunging after almost hitting $1.29 overnight!

The EUR/USD with a 3C negative divergence at the highs and the Draghi plunge, this pulled futures down, it wasn't the election in the US.

There is a positive divergence in the EUR/USD as the market opened, we'll see where it leads.

More coming...