Last week I was talking about how many correlations and different assets there are that influence each other and move the market is strange, almost unpredictable ways, at least it looks that way to people who aren't aware of how treasuries, currencies, safe haven assets, risk assets, credit, a trove of derivatives all work together and have different algos that influence price, luckily we can basically sum all of that up by watching the underlying flows of money that result from all of that, but the market is never as simple as it's portrayed to be. One of the biggest movers of the market is completely arbitrary, it's sentiment, not fact based, but subject sentiment.
Overnight nearly half of the gap was filled, we are still left a with what looks like it will be a decent gap down taking out more than a week of gains on the open alone. How relatively small events or places can have huge, unforeseeable consequences.
Part of the ramp effort was to be found in the defense of the EUR/USD overnight, Citi's FXwire observed the pair moving higher on news that Cyprus terms "may" be eased, however it is still my opinion that the Eurocrats have tipped their hand and done something that can't be undone-shown the world and more importantly the EU the lengths they will go which include confiscating people's private property/wealth with no warning whatsoever, this challenges several laws guaranteeing EU citizens protection against these tactics that are nothing short of thievery.
More on that shortly, for now the futures,
ES 1 min positive at 2 a.m and after...
ES 1 min from 2 a.m. to present with a slight negative pre-market.
ES 5 min overall with the same positive around 2 a.m. lows
NQ 1 negative in to the open on the 1 min intraday
NQ 1 min
NQ 5 min
Russell 2k 1 min futures
5 min's leading negative divergence has seen price move to it.
The EUR/USD overnight
The Yen saw some selling as well
The USD saw some selling which helped gold futures even more, we may take some action on gold calls
Gold futures 5 min in line and gained on the night...
More after the open
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