A.M. Update

Good morning, you are probably looking at a gap down this morning.

Last night I mentioned a negative divergence in the Index futures, it did take prices down a bit, but not that much, it looked like this...

 Last night's negative divergence to the left pulled prices down a bit, but the biggest decline was on the European open @ the green arrow as they saw the largest deflationary move in the Euro-area since 2009, printing at -.6% vs last of -.2% for December, again the worst since 2009.

Then came US GDP at 2.6%, way below Q3's revised, Obamacare pumped 5% print and lower than consensus of 3% (annualized basis), this didn't seem to move the market as much, but seems to be more proof the market did not deserve an F_O_M_C economic upgrade, that's something the F_O_M_C needed to get to where they need to be which is out of the corner they've painted themselves in to.

In any case, my thoughts are this gap down will be faded to the upside and likely fill a portion if not all of the gap.

This is NQ since the European open with a couple of positive divegrences, ES has a smaller one and TF has one as well, thus I suspect we'll be headed back to the area of yesterday's close early on in the cash market.