A.M. Update

Good morning...

Again, like yesterday, it seems to the naked eye that one of the F_E_D's trading desk's are busy trying to keep futures from crashing.

Since yesterday's close on a 1 min ES chart...

 Since the US close yesterday ES was in a small 1 min intraday leading positive divergence taking it off the closing lows and ramping ES 15 points overnight...

However as Europe opened, another batch of bad news in the form of an Industrial Production miss which is confirming the triple dip recession in Europe is real sent ES lower although they had already been in a stall and negative divegrence for about 4 hours at that point. IP missed at -1.8 vs consensus of a -1.6 print and down from the previous +1.0. Remember the manufacturing powerhouse of Europe, Germany saw their Industrial Production for the month come in at lows not seen since 2009.

Adding fuel to the fire, today's German ZEW survey at -3.6% with the 10th consecutive decline and the first negative print since 2012 with ZEW BELOW the 10-year average and it seems the PPT's efforts failed as the earlier ramp was almost completely unwound.

However this morning we saw another ramp of 14 ES points right around 8 a.m., the culprit was JPY...

Even though all JPY carry pairs look horrible, AUD/JPY may be posting a positive divegrence, in any case, JPY was the ramp catalyst.

I still wouldn't jump in until we have real proof of strong divergences, those can develop real quick, and I'd expect them to jump in to line soon based on the price pattern, but until then, I just wouldn't trust the move.