ES looked like this pre-market,
NQ bumped up about an hour after the European open around 4 a.m. and once again around 8 a.m. as the Index future for the NASDAQ lost enough ground it was nearly testing yesterday's intraday lows. The last a.m. bump up that lasted until just before the open brought it close to its close yesterday.
All of the Averages other than the IWM/Russell 2000 opened slightly on the front foot where I'd expect as they continue in the area of yesterday's afternoon positive divergence (a small one), which is the same one I suspect will give us an intraday or daily bounce in the area and kick up volatility. Beyond this bounce scenario intraday or today through the close, nothing about the near term forecast has changed, we are still in the process of rolling over, I suppose after 3 days of losses the market is entitled to a bounce. On a side note, there are almost as many up days as down days during a full-fledged bear market.
As for the EUR/USD, EUR strengthened a bit overnight moving just about all of the EUR pairs up.
Since the open there's been some downside volatility,
However so far, price is still within the area of where yesterday's afternoon divergence was forming.
However as warned yesterday and any time we have a weak, not fully formed divergence in an area like this in which we are close to decline, there's always a danger of the divergence being run over. While it doesn't happen often, the weaker it is and the further it is to a trend change, the more likely it becomes.
I suspect the market will bounce, but as I said last night, at this point it's a gift, if it doesn't we still have core positions and positions recently put on so it's virtually a win/win scenario.
I'll keep you updated.
EIA Oil inventories will be out at 10:30 a.m.
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