A.M. Update

Good morning.

It looks as if the rest of the world is following in the US's footsteps after market weakness yesterday with some key support areas like the SPX's 100-day being broken and some YTD losses such as the Dow.

A quick glance around the globe and markets look like this...

 From CNN money, a quick glance at world markets.

However, despite losing some serious ground between 4 a.m. and 6 a.m. EDT, it does look like some more work is being done in Index futures, although as I said yesterday, they have a ways to go still before I'd trust any sort of bounce and it's just as likely they slice through the support areas like SPX's 100-day and start heading toward a new lower low (Oct).

ES 1 min and a positive divergence off an early morning decline .

 There's some charts in Index futures that look like work is being done in the area such as this 30 min ES chart, after 3 weeks of declines.

 Crude as we expected on Friday when opening a speculative long position for a bounce, has gained ground overnight as you can see on the 1 min Oil futures chart above.

And 30 year Treasury futures have pulled back a bit which is exactly what I was hoping to see as this looks like it could be a fantastic counter trend long trade if we can get a better entry and a few more timing signals.

As for gold, not much in futures' charts, we'll take a look at the cash market charts.

While I'd like to say I'd give the markets the benefit of the doubt here, they haven't earned it yet. Perhaps last night's oversold sector conditions will move over to internals and set up an area from which the market can bounce from and set up some decent longer term shorts without chasing them.

I'll be watching High Yield Credit as there's some reason money is dripping in the asset and it's usually the first lever pulled to lift the market.