Interesting Overnight Changes

Yesterday I mentioned many times that the speed and size of some of the divergences in the 15 min range or so was very fast, they don't have the footprint usually needed to support a divergence like that, I thought/think there may have even been buying in to higher prices as if someone knew something about today's F_O_M_C minutes (the real information the market wants) which are released at 2 p.m. today.

I said I thought the market needed to come down a bit and create a bigger footprint for any base to bounce off of and the market has started that overnight.

I also thought that an engine like an FX carry trade would be needed, overnight the $USD strengthened and the JPY lost some ground which is what is needed for the USD/JPY pair to be that engine.

I really have no idea if there's a leak of the minutes, but the "V" shaped reversal up in credit yesterday was VERY ODD as were the 3C divergences, I might not have believed one of I had not seen the other.

We'll see if we get a stronger base/positive divergence in the early part of the day and whether the USD/JPY continues to move toward a breakout from an overnight consolidation, the minutes released at 2 pm (unless they were leaked again) are the main event and as always with F_E_D events, "Beware the knee-jerk reaction", the initial reaction is often the wrong one.