Futures Heading In To the Open

S&P E-mini (ES) Futures gapped down last night on the open for the new week to about 1422.50 from the 4 pm price of about 1426. Here's what happened overnight....

Futures bottomed out shortly after the open at 1417 and about an hour after the European open hit the level again so I'm guessing there's support there as a 3C positive divergence formed through the night and at the second bottom sending ES back up to the opening levels near $1422.50 currently with a small negative divergence forming on the 1 min intraday chart.

Really overnight nit much happened, as mentioned last night, Congress/the US government- isn't set to pick up Fiscal Cliff talks again until Thursday which should also be the last day for Window Dressing with the T+3 settlement rule, so I'd expect more action late in the week, but with low volume and algo's and HFTs dominating, volatility can't ever be ruled out. Other than that, you know we always see the 9:30 volatility spike that typically gets faded in the afternoon, today we'll just be missing the afternoon.

We'll see if there's enough action to push an underlying tone as we look at opening indications around an hour from now.