Today’s Economic News:
UK UK UK! Perfect 4 out of 4 on the retail numbers. The news seems stacked for the USA today as we get Philly Fed, NY Empire, Industrial Production, Capacity Utilization… a lot.
Quote of the Day:
Pessimist: One who, when he has the choice of two evils, chooses both.
–Oscar Fingall O’Flahertie Wills Wilde
Featured Breadth Chart of the Day:
Zweig’s away… Bears need to crack some really strong strategic levels here in order to open the flood gate. So far, just a gentle roll to this point.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Short: 1686
Long: 1668
There are obvious levels here, like 1675, for the bulls to hold and for the bears to break. Very good economic news continues to pour in from Europe and today we will get our own glimpse of economic recovery.
We still think think the market needs to do a little stewing before believing and going to the next level up. We have lowered our lower target zone to 1668 knowing that 1671, the 2% pullback area, will be tough.
We have not seen any wholesale selling yet and the MiM for the close has just really been stagnant for the last few days. There is no committal either way up or down so we find ourselves drifting toward the down end looking to pick up some possible momentum on velocity in order to truly establish a trend. In other words, the Pirates are waiting for the signal to plunder.
On the MiM:
Just no volume on the MiM. What we are hearing is that the market really isn’t believing in a direction here. The best trade yesterday, despite a slightly bias buy side market, was to the downside at the 3:20pm ET entry that I like.
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Comments about TLT (Twenty year Bond ETF):
TLT thinking twice here at that 104.90 area, unable to reach that 108. This is sit and wait time for the TLT.
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Breadth Charts in Full :
Zweig Breadth Thrust:
Getting weaker, but it needs to pick up momentum and that might not be able to happen with such great numbers out of Europe.
Cumulative Volume Index:
Upside volume has stalled out.
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
Resuming downside.
New Highs / New Lows ratio chart :
2nd time to the bounce zone for the New Highs/New Lows.
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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