A.M. Update

The overnight session despite pretty stellar reactions to earnings in GOOG, were again fairly managed up until the German vote on the Greek bailout which was widely expected to pass and did pass by a wide margin. After that the market saw a bump higher in Index futures.

 ES including yesterday's cash market to the left and overnight session, just look at volume and then the German vote to the right.

The Index futures charts didn't have much movement overnight which I found a bit surprising, it turns out I was looking in the wrong place.

Some of you may recall the bounce has been pushed nearly tick for tick by the USD/JPY carry trade, I posted a chart of ES vs USD/JPY in last night's Daily Wrap and it looked like this,

USD/JPY in candlesticks and ES/SPX futures in purple on a 5 min chart covering the entire week and then some.

Right below this chart I said,

" if you recall yesterday's Futures update as I run through 80+ futures charts in multiple timeframes each day, one of the things I mentioned was from the look of $USDX and Yen futures, it looks like the USD/JPY is about to come down. I went through the same charts today and came up with the same probability."

And then posted several timeframes of USD and JPY to show the charts leading me to that conclusion. The charts were from 7 mins to the 30 min timeframe, the only thing that was missing was the timing timeframes or very short term charts like 1 and 3 min.

Below is the 1 min USD/JPY chart itself...

 There's a negative divergence in the 1 min timeframe...

 As well as a divergence in the USD/JPY 3 min timeframe, but the pair doesn't give great divergences beyond that which is why I look at Yen futures and $USDX.

This is the 1 min $USDX with a clear negative.

As well as the 1 min Yen with a positive intraday.

This is the 3 min $USDX, one of the timing timeframes missing yesterday.

And a Yen 5 min positive divergence.

It seems to me the engine of the bounce which we have seen the last two days flashing signs it's close to a reversal is now closer than ever as the short term timing charts were the only thing missing, it was those that overlapped and family well overnight.

In terms of action and trade plans otherwise, nothing has changed, I'm looking for the same things as yesterday, it's just it seems we are now that much closer or through the process as the carry driven bounce is seeing the carry loose its legs.