Today’s Economic News:
Decent all around. I highlighted a Greek number today! Something positive. Good trade balance out of the UK. China is just alright with me and today for the USA it is wholesale inventories, a glance at what is behind the stocked shelves.
Quote of the Day:
If at first you don’t succeed, skydiving is not for you.
Featured Breadth Chart of the Day:
Fat-lady singing the bears tune starting today. Bulls need to hold and grind from here.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
The bulls need to be showing up today and taking that higher ground above 1697. That would mean a hold here on 1686 and a really nice pre-weekend short cover rally into the end of the day and the close. Fat-lady has her own ideas, though, and is warning us that even though the bulls haven’t given up, the trend has changed and we are looking at the first of a series of lower highs here.
We like the song that the fat-lady is signing and think any test of 1694 should hold. A move through there makes 1697 at play and then we could be looking at new highs next week! We say no.
On the MiM:
It was another late arriving crowd yesterday and the MiM showed a nice closing imbalance signal that could have produced a little bit for the shorts. There was almost nothing available for the long side during the last hour. Today is Friday and the MiM will be important for the read of the close. Next week even more so.
Comments about TLT (Twenty year Bond ETF):
Just shy of that 107.75 target. We will tack again today looking for a hold of the 106.75 area.
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Breadth Charts in Full :
Zweig Breadth Thrust:
We are in bouncing off that 43 area. We need to stay below 55 to keep our bearish outlook in place.
Cumulative Volume Index:
Nothing here to read.
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
Nothing here, no real bull gains.
New Highs / New Lows ratio chart :
We expected to see a bounce in here, now we expect to see a test back down to the 40 area.
Short Term Trender – McClellan Summation Index:
Long Term Trender – Cumulative 4-week Highs – Lows (the fat lady):
First day bearish. Oh-boy!
Thank you for Reading –
Marlin aka RedlionTrader @redliontrader
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