A.M. Update

Well,

There's our bounce, all it took was Chinese authorities threatening any short seller with imprisonment! Good lord I hope they don't do that here!

That's it, that's really all there is to say about overnight markets. That little maneuver sent the Shanghai Composite up 5.76% last night, the most since 2009!

I guess this means there won't be any cyber-attacks on the NYSE today to keep the Chinese market sentiment from going sour overnight.

Even Draghi throwing cold water on the Greek drama by voicing "unprecedented doubt" that a solution will be found hasn't dampened the bounce mood.

 ES 1 min with yesterday's late day positive divergence in to the close and ES up after the announcement of the arrest of any "malicious short sellers" by the Chinese Ahh-thor-a-tas!

Note however the near term, intraday negative divergence in both ES above this chart and NQ/NASDAQ 100 futures. It's either going to be an early pullback or distribution in to higher prices is already well under way.

Remember, no matter how impressive, we have never expected this bounce to stick.

We do have a better looking ES 10 min chart which was positive yesterday...

So I'd expect it to hold up for at least a little bit, but we'll be watching for distribution because the best thing this bounce can be used for is selling or shorting in to at the appropriate time when we start to see heavy enough distribution that it looks like it will turn.

For now, we'll just hold on to our UVXY short and partial IWM and SPY call positions.