A.M. Update

Good morning.

Having just gone through all of the futures charts we track regularly in all timeframes the one thing that stands out is the very messy nature of the charts right now, they are literally caught between this "loitering chop" and a little lag and there are few places where any tend can be deciphered beyond the very short term.

Speaking of which, Index futures are up this morning as we expected, but still within a reasonable small reversal process area...

 SPY intraday and where it would open this morning (yellow)...

 However charts like this 5 min barely have divergences, most are very sloppy which is symptomatic of the "loitering" and meat grinding, that doesn't mean there isn't a trend though.

 We have been sticking with very short term trades because of the loitering, but remember what it precedes , major moves in the market and this one is weakness. This is the 4 hour ES chart, clearly negative.

The 4 hr NQ chart

And the 4 hour TF chart.

As for the $USD and assets linked to it like oil (inversely)...

 This 30 min $USDX chart shows a base and a positive divergence that's fir for the counter trend bounce expected from the $USD before heading lower.

The 60 min Euro futures has an inverse looking price pattern/top and negative divergence so the $USD should gain with EUR/USD falling.

This is the 10 min $USD positive so it's nearly ready to move.

We did see some weakness this morning on the 1 min as the ADP employment report foreshadowed a weaker jobs environment which may effect this Friday's Payrolls, ADP did correctly predict it last month.

As for oil, it should come down with a stronger $USD bounce which makes me wonder about the employment report. We do have 3 F_E_D speakers today, mostly doves or soft hawks and I believe only 2 voters.

Otherwise, we'll wait for the cash market signals, the point is, once this chop is done and we should be close, expect a larger move to the downside in the broad market.