For most, Index futures probably don't look very interesting, but there was a reason I closed that IWM put Friday. In any case, the price pattern looks like a nice reversal process, however in the ES charts themselves, you can get a feel for what's going on short term (day or so) and longer, it's still very bearish, but with the possibility of some nice short set ups.
Even the SPX chart gives you a feel for highest probabilities in the short term (tactical) and long term (strategic).
The daily chart of the SPX shows the bearish reversal Tweezer Top, then Friday is the confirmation candle I explained Thursday night in a video in the Daily Wrap.
On 60 min chart of the SPX, you can see the bull flag I was talking about late last week. I think the flag is still of interest, but with the Tweezer top already confirmed, I think any short term Bull flag breakout will look largely like noise, but this is where a lot of great shorts will set up as many just need a slight bump higher.
As I showed Friday, the entire market wasn't set for a bounce, only the major indices and the major Industry groups, these are the two most influential market influences, in other words rather than accumulating across the market, they only made moves where it would help move the market which is not good for the bulls as market breadth is exceptionally thin, it's like accumulating AAPL to move the NDX while having no interest in the other 99 stocks, but great for the bears, this is exactly what was expected Thursday if you review the video.
ES / SPX Futures tonight on Sunday's open
The 1 min chart's divergence doesn't mean much to me, but the rounding price pattern is like the reversal process I always say we need to watch for as reversals are a process and not an event.
The 5 min Index Futures as represented by ES, do have a positive divergence in to the bull flag, this is fine, the charts have been seriously deteriorating since Wednesday last week after the F_O_M_C.
For instance the ES 30 min chart is leading negative, this is through the process of migration of the divergence so it is a distribution event since Wednesday's F_O_M_C-
what those knee jerk reactions!
The 60 min is negative as well, but not from migration which started on a 1 min chart, then 5 min, 15 min, 30 min and not will meet the 60 min which never had the confirmation on the upside move showing strong distribution in to the F_O_M_C, which essentially means, the market is already very weak, so a short term crack ion the divergences will send the market lower, any short term bounce (as was put in Thursday's video, is so far playing out exactly as I detailed it, this is a great looking opportunity.
I'll update if anything changes, but I doubt it, this was evident Friday and predicted Thursday right after the F_O_M_C.
