Once Again, the Shanghai Composite's trading day grandmothers and street corner food cart traders have identified the Chinese stock bubble and are moving en masse to get out of the way as China's Shanghai traded down again, this time -6.42% overnight, obviously in what is known as a technical correction with all of the week's losses, I believe this makes the 3rd -10% correction in the last several weeks, talk about volatility, yet across the lake, US Index futures are cool as a cucumber...
ES/SPX futures overnight almost EXACTLY where they closed yesterday as is the custom on options expiration Fridays, this despite Greece, despite China. I don't think a market gets any more "managed" than this...As long as you know the game.
I mentioned the $USD and Euro futures divergences yesterday, these were smaller than the Index future negative divergences were (and still are), yet the EUR/USD was sown overnight as forecast yesterday.
The EUR/USD.
This means the $USD forecast of continued gains off yesterday morning's 8:30 a.m. lows took place as you see below..
$USD off yesterday's lows.
And the Euro futures caved to their negative divergence sending them lower. thus the EUR/USD lower. I w warned this is not a trade I'm interested in, but it should have effects on dollar denominated assets like oil and...
It just so happens oil drifted lower overnight as the $USD gained near term strength.
Otherwise, look for more insane Greek Rumors, I'd expect them toward the later part of the day to let Quad Witching go off without a hitch.
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