Today’s Economic News:
UK nice, Europe a bit scary here trying to pull out of a bit of a dip.
Quote of the Day:
It is better to aim at perfection and miss, than to aim at imperfection and hit it
–Thomas J. Watson
Featured Breadth Chart of the Day:
We put up the Zweig to show that broader market which continues to be correcting.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Short: 1767
Long: 1756
Yikes, I am just finishing up my writing here and I have 1756 as the area for buyers to step in for today and we are at 1755.25, a bounce area into the open. Let’s see.
We are bearish, but in all fairness to the bulls, we are just 1% back from the new high and putting in a bull flag pattern which could find some support today.
If not, we like a trip all the way back to 1748, and if our bearish scenario works out, it continues down to 1703! So we continue to watch breadth, which continues to weaken. Be mindful of buyers stepping in. In the meanwhile, cash is not being put to work and that is building up on the sidelines and will have to be put to work in either bonds or the markets. Something will rally soon.
On the MiM:
Another mixed signals on the MiM and what did it tell us? A tight close. Best trade was 1.85 points to the sell side so a tight close. We are picking up some volatility and we think that will continue through the week adding to a decent MiM trade.
If you want to join the meter readers you can go to: Join the MiM
Comments about TLT (Twenty year Bond ETF):
Hiatus
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Breadth Charts in Full:
Zweig Breadth Thrust:
Bears have it on the walk but need to really bully the bulls today.
Cumulative Volume Index:
We are down, but not really selling.
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
This broke the 50% mark again showing that weakening broader market.
New Highs / New Lows ratio chart:
Not bad for the bulls here, but they need to lift it all up, not just the few.
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