Today’s Economic News:
Go little island nation! Nice numbers up for the day in the UK and not too shabby out of the Deutschland either… Alles ist gut. One number out of Japan is not so nice. In the USA today, Redbook out premarket but GDP estimates and IBD Optimism survey should be the thunder today and those are out around 10am east coast time.
Quote of the Day:
At the working man’s house hunger looks in but dares not enter.
–Benjamin Franklin
Featured Breadth Chart of the Day:
We are going to feature our short term trender today. It is crossing the 15DMA and that is not a bullish position. We have corrected or at best gone sideways for a while doing a rolling correction from readings like these.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Short: 1708
Long: 1694
We are raising the flag higher on the hill today, looking at 1708 now as a potential reversal area. On the downside, we like 1694. The market is starting to look a bit unstable again, let’s watch that ATR and see if we don’t begin to staircase up again.
Breadth continues to look weaker as we move sideways or should I say sidewary. The market didn’t have too much to say yesterday, we don’t have too much to say today. We are waiting for the next thrust to the next level and right now the market is doing a decent job consolidating that last thrust, but we remain very concerned that the underlying breadth is falling away.
On the MiM:
Yet another late arrival day on the MiM and each day getting progressively weaker and weaker. The buying comes in late and turns the data around, but for yesterday, the volume was almost ignorable. I am anxious to have this pattern play out and then mark it for posterity and see if we ever get a repeat.
Comments about TLT (Twenty year Bond ETF):
TLT-a-Whirl on the lows and trying to put in a reversal pattern here. We know that 105.50 needs to hold and the TLT bulls need to get 107 in their heads here.
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Breadth Charts in Full :
Zweig Breadth Thrust:
Our Zweig is in need of exploring below the 40 level to help stir up some buyers and to weed out the good stocks from the bad.
Cumulative Volume Index:
That was a lot of negative volume yesterday… it begs the question: Was it a 9:1 Up/Down Volume Day?
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
The 40 DPI is making a nice push downward. Again, we would like to see the bears get this down below the 20 level for a healthy correction.
New Highs / New Lows ratio chart :
Yeah -fireworks! We need follow-through now and we want some sub-forty prints, or else this is just a test of the bottom of a bull flag.
Trenders :
Short Term Trender – McClellan Summation Index:
Getting more bearish.
Long Term Trender – Cumulative 4-week Highs – Lows (the fat lady):
Still bullish, amazing on the long term trender.
Thank you for Reading –
Marlin aka RedlionTrader @redliontrader
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