A.M. Futures Update

It seems last night's Quick Futures Update was right on,

"after watching tonight's futures actions, I feel pretty confident that the bounce that seemed destined for today will occur tomorrow, perhaps even through the overnight session and in to tomorrow."

So far, that is exactly what has happened. The signals for a strengthening (short term) USD and weakening (short term) Yen both played out overnight sending the USD/JPY higher as posted last night, also sending Index futures higher. Our near term call for gold to come down off the early week highs has also been in effect since yesterday.

I believe we have more to go during the cash session since those divergences are still there.

Here's the very near term, I'll update the bigger picture or what comes next soon after this post.

 $USDX gained overnight sending USD/JPY & Index futures higher.

Yen lost ground again sending USD/JPY higher overnight.

USD/JPY overnight sending Index futures higher.

30 year Treasury futures w/ a negative divegrence look ready to come down sending yields up and pulling stocks higher with them.

ES is in line with gains.

NQ does have a negative divegrence on the 1 min, but I suspect further gains through the session.

And TF put in a positive divegrence overnight until about the European open and took off higher.

 This is the 7 min ES chart in line so as I said last night, I still believe, like yesterday, this is a short term bounce and you know why, use it for the right reasons.

I'll update what I think is coming next and of course the divergences through the cash session.

 Gold has fallen since our call for a pullback after early week strength.

And oil which was lateral had a negative divegrence through it the whole time as someone was preparing to sell big time this morning.

Remember, all Index futures indications for a bounce are there and should be taken seriously, but they are short term in nature.