The futures started acting up yesterday after the close in a noticeable way and they migrated to longer timeframes very quickly last night, so fast in fact I could watch it hour to hour which is not something I'm use to seeing that fast in futures (Index).
In any case, this is what the 1 and 5 min Index futures look like which for now is about the timeframe we are dealing in until we see how the market behaves on a pullback, whether it accumulated lower prices and makes a small bounce or whether it sets up a new leg lower from the initial stage 4 breaks in all of the averages.
When we have 5 min negatives like this in the Index futures, the kind of pullback we are looking for is usually right around the corner and I think we may be at the corner right now.
In other words, the market is ripe for some downside here, not the small choppy moves, but something with a little more teeth. I want to see what Opening Indications look like and if the divergences follow from after hours negatives in futures from yesterday in to the market averages (some are already pretty much there).
We'll also see if there are some reasonable set ups, I see GDX is just about making that move we were looking for under its range.
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