Midnight and all is calm

 Since the initial knee jerk reaction on the French downgrade, it's been pretty quiet in ES, I wouldn't read much in to this as it's a low volume environment at least until Europe opens in about 2 hours and 45 minutes.


This is EUR/USD since the start of trade this week, you can clearly see the knee jerk reaction, but it didn't hit ES as hard as the fx pair, however since the initial knee jerk, the pair has regained a bit of what was lost. Again, I wouldn't read too much in to this.

I wouldn't mind a pullback actually, I think the longer term charts and the consistiency between a number of asset classes points to the market moving higher, a move down might open up some great opportunities like the AAPL calls from Friday. The probabilities of the market moving higher in the next few weeks seem to be very high, so any discount on a positive divergence should be considered an opportunity, of course we always want to make sure the market is acting like we expect and ultimately let the market tell us, but the probabilities look really good here.

As usual, one bridge at a time.