Today’s Economic News:
Nice numbers out of Japan overnight, but what happened to the bright light in the UK? I am a bit worried about Ireland, too, which seems to be moving counter to the rest of Europe.
Quote of the Day:
If life is a waste of time, and time is a waste of life, why don’t we all get wasted and have the time of our lives?
–Unknown
Featured Breadth Chart of the Day:
It was hardly 10 days, but still, this thrust did make it to overbought on the Zweig. That doesn’t mean a correction from here will bring down prices, though. Check out how price continued to move higher as the Zweig overbought was eaten away. Very bullish.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Short: 1729
Long: 1709
The Masked Caper continues and that has prices flying off the shelf. Our 1729 area is the new 1709 and the 1709 is the new 1684. Today is dust settling day and holding will be a tough job for the bulls. A hold of 1709 will be the line to distinguish a May-day type reversal where the market suddenly gets a fear of heights and panics all at once.
There is still too much going on right now with gathering breadth to make that happen, we thinks.
So I dusted off the 9:1 volume chart to see if we did get a thrust signal and we didn’t. I am surprised that we can’t get this 9:1’s either up or down. Yesterday was about 7:1. Still very good but not great, great.
On the MiM:
MiM was all confused on the close. There was a $200M BAC buy imbalance throwing the dollar volume off. I tweeted that on @mrts_imbalance twitter feed. If you are not following that you should.
We are hosting a webinar on Saturday for MrTopStep to show off its wares. Frank, Kathy, and Jack will talk about trading with pivots, structure and bonds. I will be there to talk about the MiM and to invite everyone to trade it with us for a week. It is going to be a great event and I know it will sell out. To be a part of the fun register here: http://bit.ly/1bnj2rJ and make sure you show up early!
If you want to join the meter readers you can go to: Join the MiM
Comments about TLT (Twenty year Bond ETF):
Yesterday we asked for a break of 104.50, we have that and now that should be support and we want to see a target at 106.33 hit.
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Breadth Charts in Full:
Zweig Breadth Thrust:
Overbought: Bullish
Cumulative Volume Index:
Bullish
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
Bullish
New Highs / New Lows ratio chart:
Looking to stay above 90
Trenders:
Short Term Trender - McClellan Summation Index:
Bullish
Long Term Trender - Cumulative 4-week Highs – Lows (the fat lady):
Bullish
Thank you for Reading –
Marlin aka RedlionTrader @redliontrader