Today’s Economic News:
Great preliminary PMI numbers out of Europe and China. The recovery is underway. The US today also has PMI numbers along with initial jobless claims and housing information the combination of which should at least set the tone of what is looking like a bullish bias on the open. The bulls might get some wind beneath their wings if the can cling to a rallying cry.
Quote of the Day:
Your heart often knows things before your mind does.
–Polly (Pearl) Adler
Featured Breadth Chart of the Day:
Since we are in the middle of a Zweig thrust count we will showcase that today as the featured chart. Yesterday was a waste of a day. We have to get above 60 in ten days and yesterday’s moved the wrong way. We have a nice gap up this AM pre USA market so if we hold this open and close even higher, the Zweig will renew its upside movement nicely. Should selling continue and kick in today, like yesterday’s close, and the Zweig should move again below 40 then our count will restart with a new move above that line. We are skating on the edge for now.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Short: 1668
Long: 1606
We are totally unsatisfied with our call for a move up to 1668 followed by longer term failure. There just is not enough bulls around to ignite and sustain a move higher. Today the bulls have an excuse with Asia and Europe preliminary PMIs beating expectations and coming in as expansionary. Good stuff. That might put the fear in the bears too.
The US has their numbers coming in pre-market also today, so we might roll the day together like a giant PMI burrito and just might be able to coax the bulls to start to run.
Our goal remains 1606 but we want to see some upside before that target is hit and we want to reset the Zweig at some point too.
On the MiM:
Another great call from the MiM as it displayed for the 2nd day selling into the close.
Looking at the snapshot below it is clear that taking the early signal was the right trade yielding over 10 points. No chance for the bulls on the close as the best long was still a loss according to our snapshot chart. Even if you trade the MiM like me, waiting for the 3:20pm entry time and for the signal to strengthen above the thresholds, there was plenty of meat on this downside move to keep any bear happy. Tic Tac Toe 3 strong reds in a row would have gotten you 5 if you traded it.
I am suspecting that as we move to the end of summer and posturing for the fall starts to take shape the MiM will be playing an more and more important roll in the end of day 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 a move to 105 area from here.
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Breadth Charts in Full :
Zweig Breadth Thrust:
A down day today and we are back to 0 on the count.
Cumulative Volume Index:
Selling has stalled a bit too.
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
Market breadth, however, continues to weaken.
New Highs / New Lows ratio chart :
The actions here are suggesting we are in for a fast upside move at some point.
Trenders :
Short Term Trender – McClellan Summation Index:
Bearish
Long Term Trender – Cumulative 4-week Highs – Lows (the fat lady):
Bearish
Thank you for Reading –
Marlin aka RedlionTrader @redliontrader
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