Today’s Economic News:
Nice data out of Asia and away we go on the market pre New York open. Not much from Europe and the news from the US today look benign. It is optimism Tuesday and these days have been very bull friendly.
Quote of the Day:
Honk off, bozo.
–Eno, The Duplex
Featured Breadth Chart of the Day:
Not very bearish action here but it is looking like 1680 might be in the works.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
We find ourselves pinned against the wall again today while we wait for more selling to show up. Instead I am getting swept upstream in a buying frenzy. That 1679 target is today’s pinned high for us and that makes us very nervous as we are opening right there with an overnight high of 1681.23. We will be looking for an opportunity to short into this open today.
Breadth, like a big ocean tanker is slowly spinning around into the bulls direction. We still are left very unsatisfied with the selling into the correction and remain stubbornly pessimistic about new highs even though they are just a little over 1% away. We are looking at the closes over the last few days which are stringing together a serious of sells. If that trend stops and we buy the close today we will feel very very naked indeed.
We have wanted the downside to climax since 1627 and 50 points later it has left us very unsatisfied and frustrated. This 1679/80 target should satisfy a far number of bulls so we will watch yet again today for an overreach reversal. Maybe 1679 is what a bear wants.
On the MiM:
A scratch for the the MiM yesterday even though there was negative strength. There was just too much interest in buying all day long to have the sellers at the close put a dent in the day and to turn the price action around like on Friday.
There wasn’t much to make either side on the MiM as price basically slide sideways into the close.
That is 3 days now of selling on the close and 7 of the last 8 even as this market continues to rise.
If you want to join the meter readers you can go to: Join the MiM
Comments about TLT (Twenty year Bond ETF):
TLT all balled up and consolidating that move down. We need to watch for a breakout above 104 or below 102.50.
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Breadth Charts in Full :
Zweig Breadth Thrust:
Not what a bear wants to see, a really decent thrust up to 60. We need to see the volume drop and the bears take that for weakness.
Cumulative Volume Index:
Bullish, there is real new buying in here.
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
New Highs / New Lows ratio chart :
We wanted this below 80. Again a sign of some really good buying. Bullish.
Short Term Trender – McClellan Summation Index:
Long Term Trender – Cumulative 4-week Highs – Lows (the fat lady):
neutral bearish.. We are about to lose the trend to bullish again if the bears can’t turn it in the next 2 days.
Thank you for Reading –
Marlin aka RedlionTrader @redliontrader
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