Opening Indications

This morning's opening indications are telling us less about the market this morning and more about the way the market really works in a much larger sense, although there are some early hints worth mentioning.

As you know from Friday, while the market was plunging, 3C would normally follow if the smart money underlying trade was selling off as well, instead in many assets they seemed to be accumulating the sell-off which was strange given the perception of the Fiscal Cliff being solved are very negative.

We saw this in ES , the SPY, DIA, QQQ and NASDAQ futures had the strongest signal. Not only is it amazing that the Equity Index futures like ES and NQ maintained a bid under them all night, holding them up, but this morning they have moved up in a most profitable way. This probably has nothing to do with the Fiscal Cliff and more just Wall St. taking the other side of the retail trade (sell-off) and making money on it. This is the bigger lesson, this is Wall St.

We'll look at opening indications as well as that is the point of the post, but they are telling us much less.

 DIA 1 min backed up to Friday's close...

 1 min this morning with a very slight negative divergence, this is along the lines of a consolidation unless the divergence grows larger, but not telling us much as of this moment.

 S&P E-mini Futures are closing in on the pre-plunge levels from Friday  and also have a slight 1 min negative divergence, I think I know why- I'll show you at the end.

 NASDAQ E-mini Futures which saw the strongest 3C positive divergence during Friday's plunge have now moved above Friday's pre-plunge levels, a definitive profit for those that accumulated the plunge.

 The QQQ also had a positive divergence during late Friday, over all the 1 min chart is slightly leading, but for practical purposes I'd call this more "in line" or price/3C trend confirmation.

 SPY 1 min close up is a little better than in line this morning.

 This is the divergence on the 2 min chart since Friday.

The slight negative divergences here and there are likely because of the FX pair below, EUR/USD...

Overnight as the pair lost ground while the Futures didn't budge (which is strange in itself under normal circumstances), but as the EUR/USD lost ground, they too saw a positive divergence in to their own p;lunge, it wasn't quick like Friday's, it lasted all night, but the pair shot up just before the open, now they are losing some ground and I suspect that is what is causing the initial 1 min negative divergences in a few averages, but here's another bigger picture lesson of how the market really works, cheaper prices all night are accumulated and then a quick surge when volume is higher and they can easily sell in to it and make money.

I'm going to look elsewhere for signals, there are some interesting longer term signals such as AAPL which I mentioned late last week, I want to keep a close eye on these.