Waiting for an interest decision out of Europe. Japan just dumped a pile of cash for a massive intervention plan.
Quote of the Day:
It is better to aim at perfection and miss, than to aim at imperfection and hit it
–Thomas J. Watson
Featured Breadth Chart of the Day:
We are on a Zweig thrust countdown until next Monday’s close to get above that 60 line. If we are able to do that, the signal is called a Zweig reversal thrust (in this case it would be a resumption thrust) and has been successful in calling sustained bull markets or continuation of bull markets.
We don’t think it is going to happen, at least not this time. We are looking for failure in the next couple of days with another trip below 40. We could be wrong so we need to have a plan B.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
We have been calling for a reversal at the 1668 area. The Globex high was 1667 so we are starting to think about more downside now. Our upside target has moved up to 1672, a break above that would have us looking to 1680 and would tell us that we have it wrong.
We want the bears to resume control right in here and to see 1656 go, then 1643 with 1606 as a downside target. It is the last week of summer in the US and it will be fun to see what the end of August has in store for us.
On the MiM:
Friday never really produced a strong MiM signal and that was comfortable enough for the markets to close slightly higher. We would have thought we might get some more in this AM opening today on the US markets, but as I write it looks fairly flat.
At 2pm ET tomorrow I will be talking about the MiM, how I use it, how to read the meter and SnapShot charts. John Monaco from the floor of the NYSE will be there to answer questions about the mechanics of the close, how the data is collected, etc. Jill Malandrino will be asking questions and hosting and keeping us on track. After we are done we will leave the room open and broadcast a screen-share of the MiM in action and maybe a trade will set up.
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