Futures Update and The Big Picture

When you find a lot of objective data that gives you an edge, you don't ignore it no matter what price does to try to shake you off the trail (Risk management is important to do this). Well over a month ago I wrote about what I thought would be the 2 biggest issues in assets to effect the big picture, the $USD which I said would be bought as more and more countries enter the currency wars by devaluing like Japan did, since we have had 3 Central banks in Asia cut in 24 hours!

I also said the Yen would be key, it has been. This is not at all my opinion, this is based on objective facts.

Short term intraday Index futures are like the SPY 1 min chart, positive intraday, but this is the big picture that really matters and is not often seen.

*Remember 3C in futures is much stronger at the same timeframe (15 min ES is much stronger than 15 min SPY) as a signal.

 This is the 15 min distribution in ES, not only is the distribution exceptionally clear, but so is the topping or reversal "PROCESS".

This is the TF (Russell 2000 futures) 15 min chart, Also LEADING NEGATIVE in a big way.

The NQ (NASDAQ 100 futures) leading negative divergence

And the 15 min NQ chart.

One of the themes in my "Currency Crisis " articles was a massive $USD base/accumulation as you know, risk assets including the market move opposite the $USD, as does oil most specifically-I like our recent oil shorts a lot.

 This 4 hour $USDX futures chart  shows "A" the second bottom of the "W" base and the rise off that bottom to the breakout line, at the breakout line it pulled back at "B" as UNG recently did in a similar situation which is good because after the last run up, the $USd needs to regroup, shake out weak longs and get ready for its move to a new breakout and stage 2 mark-up.

I have been telling you that the pullback at "B" is ending, "C" shows 4 hour positive divergences suggesting this is true, this is a major problem for the market and it's right around the corner.

This is the $US Dollar Index with the "W" base at the yellow bar and the pullback at the red bar, the accumulation in the base is clear, I decided to use Don Worden's Money Stream to give you another accumulation/distribution indicator's out;look. Don Worden is the creator of all money flow indicators with his TICK Volume, it was the predecessor of OBV and every other money flow indicator and used by Wall Street when he created them in the 60's, Money Stream is his crowning achievement, it obviously confirms 3C.


This is a 60 min 3C chart of the $USD, here you can see the reversal and accumulation of the pullback area. Soon the $USD will be breaking out to stage 2 mark-up. Just remember the $USD moves opposite the market, or rather CAUSES the market to move opposite it and in my view, is a reflection of Wall Street discounting the future as they believe the F_E_D will back off QE, which would send the Dollar higher as well as all of this world wide currency devaluation.