A.M. Update

Could the knee jerk reaction be ending already?

As you know, last night I posted the start of NQ divergences showing that the knee jerk move was going to lose some air, this morning things look a bit different, however in some areas, damage or results of yesterday, may stick regardless, the $USD specifically, but we'll look closer at that in a bit.

I suspect the parabolic knee jerk sees a knee drop which has already started. However this was already warned about in advance so it wouldn't be much of a surprise, more of a concept.

 EUR/USD which gained nearly 400 pips has retraced most of it, but has a small positive divergence.

The 1 min $USD which regained most of its loss also has a negative divergence confirming.

And the Euro has a positive, although this looks to be less about the Euro and more the F_E_D targeted $USD.

Index Futures...

 ES 1 min, but in line!

NQ 1 min also in line

And TF 1 min with a small positive.

at 5 min the NQ chart sustained a lot of damage..

As has the ES 7 min chart and as we know...

TF 10 min looks horrible as do ES and NQ.

So do I think we see the knee jerk continue to retrace? I did before it even started.