Pre-Market

Well it's not as early in the week as I thought on Friday, but it does look like the strong confirmation we saw yesterday in a number of assets, but most importantly the short term futures for the VIX as well as Treasuries, finally is bringing about what I think will be a pretty nasty pullback and I use the word loosely, it is only meant to imply that after it is done (with the signals we have now), there should be another move higher. Whether this is a pullback in the true sense of the word or something uglier, I lean toward something uglier.

Overnight ES to me doesn't reflect the drop in the EUR/USD, much is being made of Reid's comments yesterday and they make for a nice catalyst, a nice explanation so CNBC can make viewers feel like they understand why the market acts the way it does, keep everyone complacent, but a lot of the damage came after the European open.

As we sit now, the market is set for a decent gap down, but as always watch out for early volatility and the misdirection of a.m. trade.

 Note ES didn't really drop until a negative divergence right around the European open (green arrow).

 Also the EUR/USD didn't commit to its break lower until just about the same time.

This morning there was a large seller in gold futures around 8:18, a bit interesting.

We have EIA petroleum due out at 10:30 so we'll be watching USO and related assets for any possible trades, this use to be a report that was leaked quite a bit, it hasn't done o as much lately.

Oh and it looks like the SEC is going after SAC's Stevie Cohen, I wonder if that has anything to do with Schapiro's leaving the SEC, after all no one would say the SEC has been zealous about fulfilling their job duties.