So as the Futures positive divergence suggested, we've seen a pretty strong move up off the open, but in taking a closer look at both S&P and NASDAQ E-mini Futures, I really don't see an area in which they were really that negative to start with; the positive divergence is more than clear, the negative divergence, not so much.
ES positive divergence starting since before the European open, but very strong by the US open and price followed it right up as soon as the bell rang.
NASDAQ futures in the early overnight session to the European open, there's no real negative divergence there, so this was all a reaction to news with no real underlying institutional activity? You can see the NASDAQ futures were also going positive in to the European open, but...
The divergence was quite strong by the US open and price followed. Interesting. Time to look around.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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