By: redliontrader
Today’s Economic News:
Japan, wow, hot. Germany showing some slowing in the last week or so. In the US, Chicago PMI (9:42am for the early readers).
Quote of the Day:
Sharing money is what gives it its value.
–Elvis Presley, singer
Featured Breadth Chart of the Day:
Here is that 40 DPI we talked about yesterday that was becoming divergent. The market continues to unravel out in the fringes as all those thousands of stocks not in an index continue to correct in here.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Short: 1780
Long: 1748
We are in that topping process area where our levels spread way out. 1780 on the up side and 1748 for the down side. Watch 1762 today for the demarcation zone. That 1766 area is worth watching for shorts should we rally there on news today.
We are 1% back, remember what happened last time we moved back 1%? It was on 10/13 @ 1736 on the ESZ. That was 20+ points ago. Be careful shorting too soon on such a big move up.
On the MiM:
A nice signal developed early and then as we entered around 3:30pm we took off our trade for a couple of points. The best trade would have been entering right at the 3:00pm time frame and exiting at 3:30pm. These evaporating MiMs, that is MiMs where the values trend toward neutral, often reverse and this one did with a 3:40pm entry yielding a nice 2-point short.
If you want to join the meter readers you can go to: Join the MiM
Comments about TLT (Twenty year Bond ETF):
That 107.25 area was hit. We are really just putting in a bull-flag consolidation pattern still, but a breakout to the downside should take us to 106.50, and a nice move higher could take us up to the 109.25 area. We want another day to settle before we try and call a trend.
>>> Follow us @redliontrader<<<<<
Breadth Charts in Full:
Zweig Breadth Thrust:
Zweig getting a bit of a boost into the Friday close. We think this morning’s gap open could be a buy.
Cumulative Volume Index:
Upside volume has stalled out.
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
Has the edge of the symbol universe corrected enough? We hit that 1% correction, that seeded the push.
New Highs / New Lows ratio chart:
Finally, some relief here… let’s watch what happens today (I expect to be higher).
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