Today’s Economic News:
Germany giving us very, very nice data. In the USA today, it is Redbook/S&P Home Price index premarket and then Consumer Confidence for a post-open booster along with the Richmond MFG Index. Tuesdays have been quite strong for the bulls this year. We have topped at 1668 so now we will see if the bears can do some wrangling of their own.
Quote of the Day:
Who in their right mind would ever need more than 640K of RAM!?
–Bill Gates, 1981
Featured Breadth Chart of the Day:
Bears need to follow through to the downside now.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Short: 1656
Long: 1606
That 1668 area proved to be as resistive as we thought it would be all last week. The 1656 has not held and now we find ourselves testing the 1643 area from which we think a break will set up selling down to 1606. We remain bearish and cautious.
On the MiM:
Controversy on the MiM as it showed a strong buy-side dollar value but weak symbol collection. This MiM snapshot tells us that there is selective buying going on. Big dollar buys on a few symbols.
This is what the meter looked like in the close and there are the top two symbols for the buy and sell side. EMC had a selling imbalance of 48MM but look at JPM, 240MM buy side imbalance all by itself! When you are looking at 217 symbols, it only takes a few big symbol imbalances to throw off the dollar size of the imbalance. That is why we added in the symbol counts so you can read the meter both ways. Look for alignment. We had a divergent signal yesterday and that should have been enough to wave off a straight trade.
We’ll discuss this further today in our webinar. Signup at: https://mrtopstep.omnovia.com/register/53291377185297 and join us today @ 2pm ET / 1pm CT and trade with us into the close.
If you want to join the meter readers you can go to: Join the MiM
Comments about TLT (Twenty year Bond ETF):
Mission accomplished here as we hit that 105 target. We would expect a bit of a rest down to the 104.25 again.
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Breadth Charts in Full :
Zweig Breadth Thrust:
Day 5 of the Zwieg and a stall. We want to stay below 56 for our bearish call.
Cumulative Volume Index:
If we see selling, we want to see it with conviction!
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
No new info here.
New Highs / New Lows ratio chart :
We want to stay below 90 for a bearish mood.
Trenders :
Short Term Trender – McClellan Summation Index:
Bearish
Long Term Trender – Cumulative 4-week Highs – Lows (the fat lady):
Bearish/neutral. We want this to stay below that 15 day moving average if we want a more sustainable bear market.
Thank you for Reading –
Marlin aka RedlionTrader @redliontrader
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