Pre-Market

Overnight Japan reported its largest surge in consumer spending in 9 years, up 5.25% on consensus of 1.6%, perhaps Kuroda is combatting deflation, or maybe not as Retail Sales came in at a miss, expected to drop .8%, it dropped -1.4% instead, something doesn't smell right does it? A 9 year record in Consumer Spending with a huge miss in Retail Sales, could a Central bank be manipulating data to make it seem like their extreme policy, which has thus far shown every sign of a total failure, is actually working? Hmm... Well the Yen was up overnight. Industrial Production also missed at .2% on consensus of .4%, it is getting even more fishy!

German March Retail Sales and Spanish GDP also disappointed, but as expected. The April Eurozone CPI reading came in at 1.2% on consensus of  1.6%  and down from 1.7%,, this deflation has all the analysts thinking that a 25 bps cut in the ECB refi rate, and perhaps deposit rate, is now assured at Thursday's ECB meeting.

Finally, Eurozone unemployment for March hit another record high of 12.1%, up from 12.0%. This was in line with expectations.

US data includes: quarterly employment costs, house prices, consumer confidence and the Chicago PMI.  

Looking at currencies overnight, I'd have thought the Market Index Futures would have dipped more than they did, the currencies are now setting up for early support of the market.

 Yen -The rise overnight is largely market negative, but th negative divergence pre-market is supportive.

EUR/JPY dip overnight is also market negative with a pre-market positive divergence which is market supportive as a carry pair

USD/JPY-another carry pair's dip overnight should have caused Stock Indices to fall further than they did, the pre-,market positive suggests a reversal to a market supportive stance.

EUR/USD This pair everyone should know by now is market negative when falling and supportive when rising as it has a positive divergence in to the opening.

Yesterday I suspected currencies where perhaps being manipulated or knew something we didn't, I kept saying the short term currencies were hung up-stuck, we see why, the market has decided where it's going and that's where it's going, new SPX highs, but watch those carefully, that's the place where the market is likely to fail, I just happen to think there won't be any significant action before the F_O_M_C tomorrow.

ES 1 min has a positive divergence pre-market as you'd expect from the currencies above and barely fell last night

NQ 1 min is the same, only shedding about 5 points overnight with a pre-market positive

TF 1 min the same story.