EARLY INDICATIONS

What I'm most looking for today is whether the migration of negative divergences seen yesterday, keeps up today in an unbroken trend of stronger and stronger distribution, that gives us a better handle on what to expect near term which is important for our tactical entries and more important than ever because the trades we have been taking the last couple of months during this choppy / toppy area have been tactical short term positions, now we are looking at strategic positions, thus the tactical entry in to them becomes much more important.

USD/JPY looks like it will try to bounce from the 8:30 a.m. retreat...

 You can see a current positive 1 min intraday USD/JPY divergence now.

However, just as it was with the 8:30 retreat, it seems most of the movement isn't coming from the $USD side which was surprising given it was US data unless it had nothing at all to do with the Retail Sales data, rather it's coming from Yen strength / weakness.

As for the averages, nothing big going on there this morning.

 SPY 1 min with a slight negative divergence intra day

 IWM down a bit and either a slight positive or 3C is moving to "in line" and I captured it in the middle of the move.

QQQ with a slight negative

And DIA with a more impressive negative.

TLT did bounce as expected yesterday, TBT (long) / TLT Update... I'm still not concerned given the type of trade TBT is.

I did see ES has disconnected with USD/JPY, a bit TOO positive, it will be interesting to see if that reverts like it did last week.