A Little Movement and No Movement

A weird close on Friday, (  I mean the positive divergence in futures and even some market averages during the late day drop) has led to a strange overnight session, but one that 3C oddly predicted as it was in a leading positive divergence as the market sold off.

I don't predict markets, I just tell you what I see in the underlying trade, so while the Friday close and positive divergence was weird, the overnight session is not strange from a 3C perspective at all, but from a common sense perspective, very strange.

The Senate gave up on negotiations yesterday and decided that they'd get an early start on this big problem at 11 a.m. today! I think the FX market, EUR/USD reacted appropriately, but in more weirdness, that didn't effect the Equity Index futures at all.

Here's the EUR/USD...

 This is a 5 min chart over the last 3 weeks or so for perspective...

This is Friday and this week's open, last night the EUR/USD which was stuck in a flat range with Equity Index Futures, started moving down, but look at what happened to the Futures....

 ES-SPX futures-NOTHING happened except they kept a bid under them all night which is not a normal market reaction, someone was up all night picking up any sales to keep the Equity Index Futures from moving down, which is exactly what 3C showed late Friday, but it was a short divergence, I wouldn't expect it to last all night, but then again, someone accumulating a sell-off is strange too and I suppose would create a strange result.

NASDAQ futures held up all night, but then something even stranger happened....

 Whoever accumulated on Friday is likely now in the green and made money as ES went from the $1405 area late Friday (average the fall from $1405 to $1382 for the average price and consider the price now at $1396) to $1396, over 10 points in a snap. in ES this morning pre-market.

NASDAQ futures did the same, except they even had a leading positive divergence before they moved.

So today will be strange and volatile I expect. I'd love to see the NASDAQ pop quick, take profits on Friday's calls and be done with that and ready for a move lower, if we can get a bigger pop and the SPY calls make a profit, even better and be ready for the next move to the downside.

We do have some positive divergences in the averages in 3C as well, so that should be interesting in regular hours.

We also have more volatility coming as the FX futures and Cash Bond markets close at 1 and 2 p.m. respectively.

I think all we can do is try to follow the money at this point, which I'm happy for, otherwise I'd have no idea at all why this market is acting the way it is.