OPENING INDICATIONS

THE DIP IS BEING BOUGHT Early.

I've run through the watchlist and just about EVERYTHING that gapped down has positive divergences building, keep in mind it's very early and as I said yesterday, it will still take some lateral movement to create a reversal pattern, but thus far almost everything that gapped down has started with some pretty impressive positives for this early.

This includes VIX futures, as you just saw a hint of.

The only thing not showing a strong (opposite of the open) divergence is oil/USO and gold/GLD and Silver/SLV.

Actually gold does have (1) 1 min negative started. GDX, DUST and NUGT all have divergences opposite of their gaps started, DUST positive, GDX and NUGT negative.

These are initial opening divergences so I'd not rush in to anything, but lets see how they develop.

Here's a couple of examples.

 GDX building a negative, NUGT is also building negative and DUST positive.

GLD in line

SPY building a positive

IWM building a positive.

If this holds out, they need to move to the next longest timeframe and continue with a lateral type base, these may make for some very discounted purchases, but not yet, we need to still monitor the data as it is very early, but it does look like the overnight reaction was panic in a thin market.