By: redliontrader
Today’s Economic News:
Light on the calendar for today… market should just tap out quietly for the week.
Quote of the Day:
He who laughs last has not yet heard the bad news.
–Bertolt Brecht
Featured Breadth Chart of the Day:
New Highs/New Lows chart showing the strength of the follow-through day with a bullish 96.7 reading. That needs to stay above 90 now.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Short: 1729
Long: 1709
Same numbers as yesterday, we want to watch 1729 and 1709 for the breakout of the current trading range. Right now we are stuck in the middle with you. A break above 1729 brings up 1732 as a target. We are in the 3 or 4 point higher grind mode right now until we see the NHs/NLs chart below break below the 90s. That will be the sign of exhaustion. Right now we are in a strong overbought that has a way of generating its own upside momentum.
On the downside, a break of 1709 (which is coincident to the 1% pullback area) should see a swift move to the 1694 area.
The market will go where it wants, and while we still believe there is another big swoosh between here and December 31st, this market looks to us right now to be set up to grind higher. Breadth is very strong.
For today, we are listening for a whimper.
On the MiM:
Not much of a move either side in the last hour of trading. That low volatility closing is going to be the subject of a study that I will be publishing in October.
For now, we wait for volume and volatility to have the MiM guide us into the good trades. A good trader is a patient trader.
If you want to join the meter readers you can go to: Join the MiM
Comments about TLT (Twenty year Bond ETF):
We have 104 for a hold and 106.50 as an upside target. Ideally we would like 104.50 to hold as a neckline. If 104 breaks, then 103 and then to the lows.
>>> Follow us @redliontrader<<<<<