A.M. Update

The overnight session has certainly diverged quite a bit with Japan's Nikkei plunging by -2.61% and the USD/JPY falling as low as $108.31 on Yen strength. Regarding the latter, Japan's Finance Minister has said that "No further increases will be tolerated" in the USD/JPY.

The ECB meeting left rates unchanged as tensions between the central bank and the biggest player in the European Union, Germany are on the rise over the ECB's ABS program and just what quality or junk the ECB is willing to accept in ABS purchases, the ECB wanting junk like Greek ABS while Germany demanding that the central bank doesn't become the "Bad Bank", with European banks transferring their junk ABS to the ECB.

Maybe most surprising although I shouldn't be being I decided to open some leveraged longs for a short bounce I expect, is the fact the US futures are near unchanged overnight, the same can't be said of Brent and WTI crude, both sliding with WTI under $90 for the first time in 17 months and Brent at June 2012 levels.

Today we'll be on the lookout for continued divergences, if today sees continued base building, then I'd expect a bounce in to next week, however if we start seeing upside today, I will probably switch back to the short side before the weekend, we;ll find out in just about an hour...