We are still not far off from being able to create a larger bas1e for a stronger bounce, but as always we want to confirm a base is actually being built. Yesterday's ramp higher on what seemed to be mostly short covering (profit taking) didn't sit very well with me because of the lack of a base.
Overnight PMI's coming in disappointing or softer than expected, such as China with its lowest Service PMI print since the series began in November 2005 printed at record lows of 50, just above contractions, anything under is contraction.
European PMIs (services and manufacturing) came in a little softer than the flash estimate. and futures fell from there.
ES falls shortly after the European open.
As you can see, there's still an opportunity to create a stronger base.
USD/JPY mitigated some of the damage to Index futures as it was up on a weaker EUR/USD after the PMIs came out.
The US has a 9:45 Services PMI due out and a 0 a.m. ISM (Services) as well as the rest of the global PMIs.
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