Good Morning – RedlionTrader’s First Call

Today is National Agriculture Day and while we work hard to put food on the table, our farmers work even harder, make sure you thank a farmer just in thought if you don’t know one in person most of us don’t and that is sad.

Overnight Markets:

Morning links:

Around the Globe

Asia – CLOSED

Shanghai (China) +0.78%
Hang Seng (Hong Kong) -0.19%
Nikkei (Japan)+2.03%

Europe as of 7:02am EDT

DAX (Germany) -0.52%
FTSE (UK) -0.34%

Today’s Economic News:

Juicy Fruit stripes from the UK this morning. In the US we will be watching the housing indexes once again.

Quote of the Day:
An adventure is only an inconvenience rightly considered. An inconvenience is only an adventure wrongly considered.
–G.K. Chesterton

Current Breadth Readings: (click here to see all our breadth charts)

We are going to be watching the “fat-lady” again as we are beginning to just blush a little after yesterday.

ES SP500 Futures Comments:

Short: 1555
Long: 1522

We still like that lower landing pad at 1522. We also are grateful for the gap close and rally up yesterday. The rally was not strong enough to keep the breadth indicators from being negative and that tells us something. The NH/ NL indicator remains very strong. We are watching very very closely before we cry wolf, as we have used one of those up already and tops take a while to form, but we are beginning to wind ourselves up again looking for a decent size correction.

For today we think 1555 is the best that can be done.. if higher we have incorrectly estimated the remaining strength of the market.

The bears were not really able to handle the ball from the nice Cypriot gap handed them yesterday. Today it is the bull’s turn to show that they still have their hooves on the accelerator. If that 1555 gets blown out than the wolf whistle goes back into the pocket. Stay cautious here in both directions.

US Dollar DX Futures Comments:

We like the 82.70 hold from yesterday. The price action looks a little ragged and uninspired. We still would like a break above 83.06 for a move back up to 83.22.