Today’s Economic News:
UK and Europe continue to put up great great eco data heading into the fall. In the US, the 10am ET release of consumer confidence will inject some energy into the markets.
Quote of the Day:
I am not a vegetarian because I love animals; I am a vegetarian because I hate plants.
–A. Whitney Brown
Featured Breadth Chart of the Day:
Day 3 on the Zweig count is complete. It has until all of next week and the following Monday to get itself up and over that 60 level. We don’t think that will happen, but if we are wrong, that will be incredibly bullish.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Short: 1686
Long: 1675
On our 60 minute chart we are building a reversal head and shoulder pattern so we want to watch for the inverse right shoulder with a move down to the 1643 area and then a test of the neckline at the 1556 level. That pattern would target out to the 1680 area and be very bullish if completed.
For now we still have a 1668 reversal target and that means the bulls will have to put in a follow-through day today and close up into the weekend. That is a bold move. The 10am ET consumer confidence number should help decide that fate.
We remain bearish in a longer term outlook looking for 1606 on the downside.
On the MiM:
The MiM gave us an early buy signal that eventually faded away as the market rallied. A 3:10pm entry with a pre-reveal exit was good for almost 4 points, but that is a trade that I personally did not trade and not sure I would have since I tend to wait for 3:20pm for my entry.
For today in the markets I am on the fence as far as direction. I want the ES to run up to 1668 and fail for a longer term correction, but I am also interested in a fade today to 1643 followed by a rally back up to 1656. The 3pm MiM data will be a nice reveal today as I formulate my longer term swing goals.
For those that read this every day… there is a special event next Tuesday. Jill Malandrino from TheStreet.com will be hosting a webinar about the MiM and I will be sharing some of my observations and explanations about the MiM. John Monaco from the floor of the NYSE will also be there to talk about the mechanics of the close and how important the close is for the market as a whole.
The even starts at 2pm ET and I plan on sharing my copy of the MiM in the webinar room live starting at 3pm ET. If a trade sets up, we can trade it live and I will share my 3 months experience on reading the data and explaining what I see.
We will also be hooked up to the floor of the CME as the ES trades into the close and use any observation from there. It is going to be a great event and an opportunity to see the MiM live, ask your questions, and learn.
Owning The Close: The MiM – Tuesday at 2pm ET / 1pm CT.
If you want to join the meter readers you can go to: Join the MiM
Comments about TLT (Twenty year Bond ETF):
Continuing to watch for a bearish bounce right here around 102.50 up to the 105 area
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Breadth Charts in Full:
Zweig Breadth Thrust:
Looking for a failure around 56 on the Zweig.
Cumulative Volume Index:
This is a bit bullish with the double bottom in place. Signaling possible exhaustion on the sell side.
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
Again, a little bullish.
New Highs / New Lows ratio chart:
We would like to see this stay below 90.
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