Opening Indications

As I mentioned last night in my Daily Wrap... or "Patience" post, there's essentially two areas of action in which I'm looking for, the first being the shorter term piggy back trade which is long and speculative, really if you are a longer term trader/investor, you can take it or leave it and of course the second action area which I view as an essential opportunity...

Here's the chart from last night's Daily Wrap...

The first area is a very short term pullback/consolidation at area #1, that may be in play today. Because this is a shorter term position I prefer to use a tool with more leverage so long as the trade looks solid which it should.

#2 is a bounce off a week-plus long base, we still don't know how this is going to go because no bounces since July 1st have held.

Overnight futures were up (ES) about 6.5 points and of course we can't have that considering where 3C was...

ES negative divergence in to the overnight / early a.m. highs. This may have been when the German ZEW Survey printed, I haven't checked the time it was released, but it was a disaster and combining that with IP and other Industrial surveys, it seems all but assured that the rest of Europe will soon enter a triple dip recession with Italy. 

As far as opening indications...

 The SPY has a small 1 min positive, but it still needs work before I'd look at any trades there.

The 2 min chart needs a lot of work

As does the 5 min so I doubt we are going anywhere soon (intraday).

The IWM picked up where it left off yesterday and still needs quite q bit of work, I suspect more of a pullback and then a reversal process, it could be done today, but it will need to get cracking.

IWM 5 min

And the QQQ 3 min looks like it's about to see some downside as expected/pullback where it can finally get things together and we can look at taking some action, until then, this is just a bunch of chop/noise that I don't want to get too involved in unless there's very good reason.

Z, entered yesterday as a spec call position is pulling back this a.m. but on a positive divegrence and otherwise looks ready to go so I'm not too concerned with that one.

 Z 1 min intraday

Z 5 min in good shape.