Looks Like Our VIX Call Might Have Been the Right Call

After the market (cash) closed at 4 p.m., Index Futures wiped out or nearly wiped out all regular/cash market gains since 9:30. The Russell 2000 futures wiped out any and all cash market gains since the 9:30 open in after hours futures trade, the SPX and NASDAQ futures are close to having done the same.

While the Dow futures have held up the best so far, the 3C divergence there looks horrible...

 YM/Dow Futures leading negative divergence.

 TF/Russell 2000 futures retraced all cash market gains since 9:30 a.m. (red trendily)...

And the 3C chart...

TF/R2K futures.

And the ES/SPX futures...

Remember yesterday's post which was a first in my experience....Market Update: DIVERGENCE BETWEEN THE AVERAGES AND INDEX FUTURES

"The one thing I keep thinking about is the fact that few retail traders are trading E-mini contracts. In other words my suspicion is the pros are not taking on any long risk but are more than willing to sell into it which has been the exact same position I have taken. Maybe I am projecting my personal feelings regarding long risk, but I can't argue with the charts above."

What better way to end what has been a strange week and not in a good way.

Have a great weekend and looking forward to Monday morning!!!