Early Action

The pre-market futures ramp I showed you that brought us back almost perfectly to yesterday's closing levels (which a mere 1 and a half before we were set to open down by at least 6 ES points) and showed a positive divergence before the 8:15 ramp well in advance (a couple of hours) was on the laughingstock of all economic reports, the ADP Private Payrolls report which is one of the most flawed models out there when it comes to actual employment data, in any case, ES was accumulated hours before its release and ramped at 8:15 on its release which was of course a beat coming in at 215k on expectations of 140k with November revised higher as well.

So the futures which were set to gap down were brought right back to where they closed at 4 pm yesterday, not surprising as we have not seen any significant negative divergences yet, but another example (if you pay attention) of how corrupt the market is as ES would never ramp on ADP for real, but it's a convenient excuse so CNBC can tell viewers why the market did this or that, even though the market was set to do this and that this morning hours before the release with a positive divergence.

In any case, early ES volatility has been met with intraday positive 3C positioning thus far...

ES drifts lower all night and then hours before the ADP report is released at 8:15 (green arrow) there's an intraday positive 1 min divergence. Since the open ES has seen some volatility with some moves to the downside, but 3C has stayed positive thus far.

Our next clues will be opening indications. I expect to be closing most if not all of the calls today, but that is just my expectation, I'll wait for the market signals in underlying trade.

Opening Indications are coming next.