Today’s Economic News:
China number is a small miss but still on the growth side, Germany continues to do well as does the rest of Europe. Europe strength is working against the drop of the Euro and the ECB’s goal of introducing inflation.
In the USA it is Philly Fed number, initial jobless claims and manufacturing PMI, all 3 are important.
Quote of the Day:
Creativity is the sudden cessation of stupidity.
–Dr. E. Land
Featured Breadth Chart of the Day:
The NH/NL chart is in the bounce zone, but we expect more weakness to follow any upside attempt, at least for now.
Comments and Levels for the Front ES (S&P500 – Emini futures) contract:
Short: 1790
Long: 1773
Our range is starting to spread apart again and we have 1790 on the topside and 1773 on the bottom. We would be watching 1785 with a break above 1786 taking us up to 1790. We would not be surprised to see 1786 hold today on the upside.
On the downside, that 1773 seems to us to be the next logical step. This market is a long way for having sold off as we continue to sit just 1% back and with the broader market in correction.
We are getting some low ticks that we haven’t seen in a while indicating to us that when prices hit, they want to sell hard. We think the market is weak and getting weaker right now.
On the MiM:
You had to be an early bird to get the worm again yesterday. An evaporation of strength kept us out of a trade. We are noting the time shifting favoring the early trader but are staying patient waiting for a return to 3:20pm signals and orders that stay true all the way into the MOC close at 3:45pm ET.
Reminder, today we are releasing the new MiM with 2 gauges to help identify in real time both how the dollar amount is stacking up and the symbol count. We want them to be in agreement.
Our image above is for yesterday as we had an evaporating imbalance which turned the number of symbols that were imbalanced from net selling to net buying, while the dollar amount of the imbalance remained slightly negative
If you want to join the meter readers you can go to: Join the MiM
Comments about TLT (Twenty year Bond ETF):
Wheee on the TilT a Whirl as bonds collapse here and rates pick up. We are watching for a touch of 102 which we think will return to 103.50, but there is dust still around the drop and waiting is prudent.
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Breadth Charts in Full:
Zweig Breadth Thrust:
Bounce area for the Zweig. Another fork in the road.
Cumulative Volume Index:
Selling.
Number of NYSE issues trading ABOVE their 40 day moving average (40DPI):
Lower low as the broader market is not holding up.
New Highs / New Lows ratio chart:
Bounce area.
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