Today’s Economic News:
Not much on the roster today… Nice trade deficit for Europe but on the back of lower imports. For the USA today there is some housing data that will help foundationally.
Quote of the Day:
If you think nobody cares if you are alive, try missing a couple of car payments.
–Earl Wilson
Featured Breadth Chart of the Day:
Watch this Zweig chart this week for a reach to greater than 60. I am not sure we can get there, but if we do, that will be a nice signal going forward.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Short: 1798
Long: 1788
Last Friday I was lost, but now am found. Special thanks to William Blount (WB) and Kathy Garber (KG) from the IM Pro room for shining the light on higher levels. That 1794 spot from WB was nice and the return from there now has me targeting 1798 for today’s high spot. That coincides with KG’s 1798 and WB’s 1799 so we have a lot of technical convergence and company in that area for today.
On the downside, that puts 1788 into play with a break below 1785 as a gateway to 1778. All tens, that should be easy to watch.
One of the things I am watching is the 52-week new highs. I wrote a decent piece for the MrTopStep site and opening print today which I think is worth reviewing about how to help with a market reversal.
It is silly season, the kind of season where bears grumble that the market is not fair and that we are way overbought, conspiracy, etc., etc… Keep a vigilant look and remember bubbles happen and they expand much further than we think.
On the MiM:
A nice buy signal on the MiM on Friday and that was on a market top! This market is still uber-bullish and if you are inclined to short it you have to show respect and either wait in the tree-stand for your mark or have some clear indication that exhaustion has set in if you are stalking.
Best entry again was right at the 3:00pm ET, which would have given up over 3.5 points. My 3:20 to 3:30pm entry, which we traded live in the IM Pro room, gave us just a bit over one, but still an amazing trade trading into the highs, something I would never have risked without seeing the MiM in action.
If you want to join the meter readers you can go to: Join the MiM
Comments about TLT (Twenty year Bond ETF):
The market continues to move higher without the TLT and lower rates. The Fed must like that. We have capped here at 104.75 with a floor at 104.25. Tight range that will expand sometime this week. If we see momentum above 104.75 the target is 105.50.
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Breadth Charts in Full:
Zweig Breadth Thrust:
Reach Mr. Zweig and tell me everything is going to be all right.
Cumulative Volume Index:
Any doubt of bullish accumulation should be set aside.
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
This remains a bit weaker than we would like to see for a bullish market.
New Highs / New Lows ratio chart:
Nice. Good settle in here. Watch today for improving new highs, we want to get up and over 300 again.
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