Last night at 1:15 a.m., I time I don't usually post on our member's site, Wolf on Wall Street, something so strange was going on in Index Futures on our 3C charts, I had to at least document it.
This is the post below that led to the overnight blood bath we are seeing right now, looking something like this...
Here's the full post with charts and all from 1:15 a.m. Tuesday January 27th.
I think the IWM/Russell 2000 outperforms the other averages early in the week "
Both events occurred, even though we saw the opening Futures trade Sunday night (yellow arrow) gap down a bit and then recover right up until the cash open at 9:30 at which time we saw the cash market "Early weakness" that recovered not too long after and of course the dramatic relative outperformance of the Russell 2000 today over the other major averages.
Beyond the chart from Friday that led to The Week Ahead forecast for early intraday trade and relative performance among the major averages, the other interesting feature is the same leading negative divergence seen on the 1 min chart here on a 5 min chart of ES.
I don't see anything after a quick look around that would explain it and as of right now, in this thin overnight market I don't want to make to big of a deal of it, but it did strike me as strange enough to be worth a post as this time of night.
We'll see what we have in the morning.