Today’s Economic News:

Much news today and so far, most of it is good.  A great set of numbers out of Japan.  UK remains in recovery mode.  In the USA today Personal Income & Spending is on the list to watch.  The 9:42am ET leak of the Chicago PMI should be of note also.

Quote of the Day:
The hunger for love is much more difficult to remove than the hunger for bread.
–Mother Teresa

Featured Breadth Chart of the Day:

Today is going to be tough as volume drops into the close and traders head out for the last warm 3-day weekend in the northern part of the country.

Comments and Levels for the Front ES (S&P500 – Emini futures) contract:

Short: 1655
Long:  1606

Friday with a 3-day weekend, nice, but we have to make it to the finish line first.   We have that 1643 area as the reversal zone for more downside over the last couple of days.  It has been tested twice now at 1545 and 1 break above targets in the 1555 area.  We don’t want to see that as it’s just a bit too bullish for our 1606 call. Our eyes are cast downward to 1606 and looking for at least one more big down day that produces a 9:1 volume day.

The closing MiM has been evaporative, starting with strong sells and turning basically neutral, but the markets are selling along with it.  We would like another good selling setup today.

On the MiM:

Not quite the selling we were looking for and again another evaporation day.  That is 2 in a row.  Today is the last day of the month and it will be very, very interesting to see how the MiM sets up.   I will be watching volume today along with the MiM as we are on a Friday, last day of the month before a 3-day weekend, a weekend where a vast number of traders will be leaving early or not coming in at all.

I am expecting at least one more big down day.  So far, pre-market today, we are up a couple.  I am not sure today is the day of the swoon, but the bear flag we are drawing here off the lows should break at some point.

If you want to join the meter readers you can go to: Join the MiM

Comments about TLT (Twenty year Bond ETF):

Double top on the TLT.  Time to watch for a third attempt here and if it breaks upward, should get us to 107.25, else looking for 104.25.

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Breadth Charts in Full :

Zweig Breadth Thrust:

Time to turn around again for the bears.  They don’t want a higher high here.

Cumulative Volume Index:

Upside volume still struggling.

Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):

Breadth does get a hold and a bounce.

New Highs / New Lows ratio chart :

Again, the bears want this to 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