Opening Indications

Well that didn't take long, from the A.M. Update's vision of a bounce which was really yesterday's to the cash open.

 ES yesterday and overnight 1 min futures with the bounce starting right at the cash open.

And guess who was there to help?

USD/JPY as suspected yesterday, but not so much from USD or Yen signals, but from Euro signals as EUR/USD has pulled back overnight as well just as we foresaw in yesterday's Futures Update.

It's all one big game of "Dem Bones", everything is connected to everything i one form or another.

The daily chart of the NASDAQ 100 shows this as the largest gap down since late January (red arrow). By this time the head fake move in the NDX should start becoming pretty clear which means this is still a choice area for NDX shorts, however at the moment we'll have to wait for the timing set up.

This is actually one of the more boring aspects of trading (the current scenario) and requires patience. Anyone who took QQQ put gains off the table this morning had a nice little trade, but if you didn't or didn't have a position there, not to worry, another bus is coming.

As for what happens next, I could use any or all of the major market averages, but they all look pretty much the same so we'll just use the SPY.

 SPY 1 min in line with an overnight drop with a negative divergence in to the cash close.

 However as the case was made (mostly in IWM) yesterday, there's a 2 min positive divergence.

 And out to a 5 min positive divergence. Of course this needs to be kept in perspective...

5 min leading negative overall in perspective.

So now is a bit of a dull time, just waiting for the base to set itself up enough to get a bounce off before head lower again as retail traders' sentiment is strangely not deterred after AAPL's bloodbath earnings, it seems retail sentiment is still in full on buy the dip mode which just makes this market all the more dangerous on the downside, but until we have a bounce, an end to a bounce and a set-up for new/additional positions, this looks to be a somewhat dull time ahead for the day, although we'll be watching as close as ever, you never know what the market may throw out there.

So far I don't see any attempt to engage typical support levers such as HYG specifically.

HYG lower with 3C downside confirmation.

Honestly I believe that smart money knows the door to exit stage left is getting smaller and smaller while there are those who are still ordering pop-corm and waiting for the show to begin or continue so I don't think they'll be drawn in to even light support of a very short term (maybe intraday, maybe a day) bounce. They have seemed most preoccupied through the entire last several months with getting out, not getting in.