CrossCurrents

The story of the morning has to be investors jumping out of Chinese markets as the Shanghai Index dropped some 8.84%, its' biggest drop since 1997...European indexes have followed with the FTSE down 1.35%, the CAC 1.45% lower and the German DAX trading down 1.3%. US equity futures down in sympathy with the Dow -54, the S&P 7.25 and the Nasdaq futures 15 points lower.

Should be quite an interesting morning as RSI traders would have been buying the oversold US equities into yesterday's close...a tactic that has worked almost without exception, thanks to the Shark Report for the link...Not sure what the play is here...my gut tells me to fade any initial move off the open but the real tell will be market internals and the reaction to support levels that may arrive sooner then most think.

• 1815 in the Nasdaq futures.
• 1437 in the ES futures.
• 12,500 in the $5 Dow futures.

I'll be watching my MarketDelta Footprint charts to see the bid/ask volumes at these levels...anyone who has not tried MarketDelta, should definitely check it out...they offer a 1 month free trail with no credit card information required...what else could you ask for...jfg.