Interestingly if you read the Daily Wrap last night, futures did decline overnight as their divergences were suggesting in the Daily Wrap.
For instance...
As you can see, futures did dip on last night's 1 min negative divegrence, but also pushed back higher in line with our larger picture for the rest of this week...continued strength or at least attempts at it.
While there's no specific catalyst for the turn back up, it did occur after the European market opened and opinion is that it was based on Greece actually making good on its IMF payment that is due today, remember there's a much larger one at the end of May and ho knows what funds they had to rob from this time to make this IMF payment...like the last.
The big story however was once again Hong Kong and the Hang Seng which was up as much as +6.4% overnight, hitting the highest levels since 2007 as Chinese regulators allowed onshore funds to invest in Hang Seng shares which are still seen as undervalued for the exact same stock trading on the Hang Seng vs the Shanghai Composite.
The closing gain was +2.7% and once again like yesterday, on heavy volume, approx. 400% more than the 30-day volume average.
Crude bounced a bit higher as was our analysis from yesterday and we'll be looking in to it very soon as an entry for a swing short, remember the longer term oil picture is looking like a large and strong base.
Gold continued to drift lower along the lines of our swing short there, but I suspect we may get a bounce there as well for a swing entry short if you are not already a part of that position.
The dollar did not move as I thought it might last night so as I suspected yesterday, I believe a larger divergence is being worked on.
The 15 min Yen looks to continue to build strength for the USD/JPY move lower on a strong basis.
As for the Index futures, they have moved higher since the overnight lows and since the open as we have anticipated as part of the week's forecast, however at the same time the 7-15 min Index futures charts I'm looking for to fail, that have been in line through the entire week are now showing signs of cracking, especially in the NASDAQ futures.
Even the 7 min NQ chart is leading negative now.
ES and TF are not there yet and we are early in the process even for the NASDAQ futures, but as mentioned yesterday, these can move very quickly so I believe not only does the process of confirmation of our forecast and trade set ups continue to develop well, I believe we are nearing the end game.
Initial Claims which were expected to be ugly following the March jobs report actually came in again under 300k at 281k vs consensus of 283k and the previous revised of 267k.
Strange how consensus is so dead on with Initial Claims and so far off on the more important Payrolls... Hmmm.
I'll have more for you after the morning stop hunt has finished.
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