Opening Indications

It's a bit early, but I figured we'd take a look and show you how the market is reacting to the overnight futures.

The positive divergence in futures started around 10 p.m. last night, I posted about it last night here...

" since then 3C has bottomed and gone in to a positive divergence as it moves higher and ES moves lower, this should result in a reversal to the upside, but there is a chance this divergence becomes bigger overnight and that would lead to a bigger move, we'll have to wait and see."

Futures are still giving that positive divergent signal that has been in effect through most of the overnight session...

ES has even started to move up since the 9:30 NY open.

Remember yesterday we had newly formed 1 min negative divergences in the market averages, this is the reason I said I thought we would see early weakness today, a gap down, etc. However we also had longer term positives that suggest after the early weakness, as long as the 1 min charts repair and go positive, we could see upside later in the day, so here's how that's progressing.

*Since Capturing these charts, all of the 1 min charts have improved on the positive side*

 DIA 1 min nega. late yesterday with the gap down you'd expect from that divergence and the start of the 1 min chart going from confirmation to positive, remember the Future charts had all night to work on their divergence, the market has only been open an hour for these charts to start to move.

 Interestingly because the IWM should lead a risk on move and recently it has been the worst performer as far as 3C divergences go, it now has the largest 1 min positive this morning.

 QQQ 1 min is in line with price, since the capture though it has started moving to the positive side.


 SPY 1 min chart from yesterday and today with yesterday's positive divergence sending the market up in the afternoon, but finishing on a slight negative divergence that sent the SPY/market gapping down this morning, here it is in line this morning, but since the capture it too has turned positive.

Longer charts...

 These are the charts (so long as they hold up) that suggest strength later in the day, the IWM is leading positive on the 5 min (remember though , we don't expect to see long timeframe positive divergences as we expect a short duration, strong move up).

 QQQ 2 min leading positive

 DIA 3 min leading positive

SPY 3 min leading positive.

I haven't had time to check and see if these too have improved since I captured them, but if the 1 min is improving, I'd expect these will also improve.