Today’s Economic News:
Not much more today than yesterday for news.
Quote of the Day:
It takes a steady hand to carry a full cup.
Featured Breadth Chart of the Day:
Our call for a bounce yesterday was based on this chart that was showing an extreme move in the ration of new highs / new lows. Obviously we can get more oversold. So for today we want to make a repeat call for a bounce.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Looking to hold this 1642 level, or perhaps do a fake down to 1636, but again we expect a higher close and, unlike yesterday, we might be right today. We think 1606 is in the sites of the bears but just not yet. The market needs a little bit of an oversold bounce.
Again, we have not had a 9:1 down volume day to seal the low, that seems to be for later.
We are bearish. Our trenders are bearish. We think we will be wandering lower for a while until we get some exhaustion. We don’t think that is here, but we do think that based on previous bullishness and giddiness, this market is not going down in a straight line and that one of those crooked moves is poised to happen.
On the MiM:
I did get some disappointed meter reader mail yesterday. The meter looked very strong to the buy side early and I, too, took a long that took a 4 point stop from me.
We have to remember there is a difference between bright green and darker green. The bright greens make my threshold of 66% and 160MM on the dollar side. The Sym PCT, that is the percentage of symbols that were on the buy side of the tally sheet, never reached that 66% area as we moved into the close. Our dollar percentage was a solid buy side, the symbol percentage was not. That tells us there were some heavy buys on a few symbols that pushed the data a bit off base.
If you want to join the meter readers you can go to: Join the MiM
Comments about TLT (Twenty year Bond ETF):
There is a gap up this am. Watching for a hold here
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Breadth Charts in Full :
Zweig Breadth Thrust:
Really overbought. That tells us this pullback is not like the others.
Cumulative Volume Index:
Volume picking up.
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
All those stocks that are now losing ground. Back down to 30% from 70%. At some point those buyers will be picking up the pieces.
New Highs / New Lows ratio chart :
Can this go lower or do we need to bounce?
Short Term Trender – McClellan Summation Index:
Long Term Trender – Cumulative 4-week Highs – Lows (the fat lady):
Thank you for Reading –
Marlin aka RedlionTrader @redliontrader
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