Today’s Economic News:
Quote of the Day:
If it doesn’t matter who wins, then how come they keep score?
Featured Breadth Chart of the Day:
On the Zweig, a bit of a set back. The strength of the backbone of this market will be tested today. A down day with a lower Zweig should set us up for selling on Monday and a turn-around Tuesday. A very bullish setup if you think higher. Just keeping that in mind.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Consolidating the week just 1% back from new highs, the Zweig is showing a bit of weakness which might just be the bulls sitting down to catch their breadth. A follow through day by the bears would reveal a bit of weakness, but we would need to break and close below that 1671 to cause any real concern for the bulls. We think 1688 marks a cap, at least for the day. Our ATR is once again imploding and if the bulls can lose some ground without increasing volatility, another upside run could be in the making.
We would like to see the trap door open in here but we most likely need at least one more failed attempt at higher prices for that to happen. Too early yet. For today we are just watching that range, 1688 – 1671, and seeing who wins that tug-of-war.
On the MiM:
Not much to say about the MiM but it does give us an opportunity to show an example of what I call a MiM divergence. Looking at the XX:40 (3:40pm ET for me) row we can see that the dollar percentage, the percentage of the total imbalance that was buy side biased, was 56%. The number of buy side biased symbols however was just 44.1%, in fact they were biased to the sell side by 55.9%. That difference, buy side dollar vs. sell side symbol count, defines a divergence and for me invalidates a directional trade. Looking under the hood, we see a few symbols like UTX that had a very large buy side ($46MM) imbalance and that biased the dollar side of the equation. In short, there was not enough of a one sided bias for me to make or set up a closing trade.
If you want to join the meter readers you can go to: Join the MiM
Comments about TLT (Twenty year Bond ETF):
Looking for 101.80
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Breadth Charts in Full :
Zweig Breadth Thrust:
Zweig, turned back from oversold… can the bears follow through? Will the bulls allow them?
Cumulative Volume Index:
Upside volume has a one day stall.
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
40 DPI Stall.
New Highs / New Lows ratio chart :
This needs to get to 85 today IMHO.
Short Term Trender – McClellan Summation Index:
Thank you for Reading –
Marlin aka RedlionTrader @redliontrader
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