A.M. Observations

After having looked at futures last night and this morning, I don't think there's anything that's exciting or any  different than the expectations laid out yesterday at 10:30 a.m., I think they are likely still in effect with Options Expiration in play which "should" be the dominant force today. As far as the expectations, I covered them in last night's Daily Wrap, but they were first posted yesterday morning in "Scenario"and I think they still hold.

 Overnight the Index futures simply did what the USD/JPY did, example...

 USD/JPY (red/green bars) and ES (purple), moving tick for tick overnight and this morning.

 ES 1 min saw a negative divegrence at its overnight high and as it slipped a positive divergence that simply kept it from slipping too far, I think this is for the opening and Maximum Pain Options Expiration Pin.

 The 5 min chart of ES (SPX Futures) went leading negative in to the overnight strength which is what I suspected yesterday in my early morning scenario, namely that any higher prices are a gift to sell short in to or sell as pros were clearly doing.

 The longer 15 min trend which is negative (ES) also reinforces that plan.

Most importantly, looking at the bigger picture of ES on a 30 min chart shows clear distribution in the rounding area, without even seeing this chart yesterday it was my opinion that price strength should be used to sell short in to, this chart should make that clear, that is what pros are doing WHICH SHOULD MAKE CLEAR AS WE PREDICTED JAN 31ST, THAT'S WHAT THIS ENTIRE MOVE UP WAS ABOUT IN THE FIRST PLACE.