Additional Confirmation

I don't want these posts (last 3 including this one) to be taken the wrong way, there's almost always a process to a reversal or say distribution in to higher prices in this instance. Just because we see the process has started (and in this case earlier than normal for the year), it's not an immediate signal that says, "this is the moment", it's more telling us that what we expected is not only showing evidence of occurring, but in this case faster than usual which lends some credibility to the forecast that this was a normal counter trend bounce, albeit likely on higher volatility, it's not at all the same as the February cycle and head fake that was meant to take out a certain area.

The one advantage of Index futures is that we don't have to wait for the signals to catch up or reset during the cash market, these have been running since Futures opened yesterday and overnight, so they are already caught up and they are telling us the same thing as we saw in the last post.

 ES / SPX Futures intraday show 1 interesting divergence, it's positive and just before the cash open so we have an idea of why the market reacted the way it did on the cash open, they seemed to have decided they might as well run the bounce on the nice head start it got off PBoC and a rumored PBoC rate cut as early as today which was a bunk story, but got futures moving. Note the positive intraday divegrence right in to the cash open in ES.

More importantly, note the leading negative divergence as just shown in the last post intraday in to higher prices. There's no leading positive, not even confirmation of current price levels, but everything thus far is pointing to selling/short selling in to rice strength by smart money as expected before we had the bounce firmly on the radar and it was more of a gut feeling.

TF / Russell 2000 futures are showing the same intraday, just like the averages and as I said, in this case there's no need to wait for a re-set of the charts from Friday's anticipated cash market move on today's open to the new reality from the overnight session.